Hey Dave — love this response and appreciate you taking the time to respond.unfortunately someone is going to have to take on the burden of improving homes, whether it is a BRRRR or F&F strategy.

But, if you are younger than 59 1/2, you could get whacked with $50k in tax penalties alone. 

You certainly can 1031 exchange from CA to Hawaii, although the California Franchise Tax Board will make it a little more annoying by forcing you file a new form (Form 3840) each year after you sell...failure to file the form will result in taxes owed. 

You will need to figure out what your monthly payment will be for the property (mortgage, insurance, taxes).

I have a large tax client base of real estate investors.

A direct attempt at seller financing will result in taxes being recognized for the value of the carryback note (making the exchange less efficient).

Basically in a year where I have a 400-500K loss in stock value, I could sell the stocks to realize the loss, sell one rental house and pay no capital gains tax on its 400-500K profit.But you might be thinking, you still lost 400-500K in the stock market.

A few rules to keep in mind as you get started: - To get full tax deferral, you have to replace the full value of what you sell. 

As far as what I do, I am a funding specialist and work closely with real estate investors to raise capital tax-free by using a specially designed holding account that grows your money between 5%-10% of interest and when it is time for you to pull the trigger on the next property purchase, you will enjoy a much lower lending rate of 3.5% - 4.5% on time for their next property.I've been doing this for 9 years and have worked closely with real estate investors for the last 4 and a half.About my future goals, I am interested in partnerships with other investors within the local area (Bay Area).

My payment is $1000 with around $300 to tax and insurance.