You have tax benefits through depreciation and you are gaining experience via property management.  

Tax implications?

I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

@Kelly Taylor who doesn’t like tax free atm withdrawals?  

This would end up getting you some tax benefits and extra cash flow that could help you leverage that into another property...maybe a 1031 exchange.

--- Does the property have 2 Tax ID numbers or just one?

Also, you will have additional occupancy tax depending whether you are in the city limits or not.

On top of that you have lower taxes, insurance and a lack of HOA's.

The intent of 1031 was not to let passive investors get out of taxes. 

The land is on two tax lots so my plan is to sell the extra lot immediately after closing for a projected $275K.The property on the other lot will be a fix and flip with projected costs of $240K and an ARV of $750K.I plan to use a PML of 2 points and 12% APY for 70% of the total cost.