Selling multiple properties in a 1031 exchange to consolidate funds for one investment property is allowed, but the property must initially be used solely for investment.This post does not create a CPA-Client relationship.

@Tim Hem The Section 121 Exclusion and 1031 aren't mutually exclusive.

Im funding the project with a 10/1 Arm (3.65% !) 

Not a lot of our competitors offer this but it's something we can consider (but for us, it can't be in a rural area, the loan amount must exceed $150k, if we're using PadSplit income (or STR/MTR income) the max LTV is 75% and the down payment must come from your own funds). 

Even first-time flippers should be able to get these terms: Application/Credit Report/Upfront Fee: $0Appraisal Cost: $0Down payment: 10% of purchase price (= 90% LTV)Rehab funding: 100%Interest payments: Paid only on amount drawn (non-Dutch)Prepayment Penalty: $0Reserve Requirement: $0Max Funding: 80% ARVMax Funding 95% LTCClosing time: Measured in days, not weeksI hope this helps. 

If done correctly, you can refinance most, if not all, of your initial funds back out of the properties. 

You can't commingle funds. 3.

Once the funds are up and they can't repay the loan(s) back because offering free services are just enticing new investors that do not have a real system setup.

I know I won’t actually be getting that right away because it should be going to savings for emergency funds for the property.

Donating money to large (FEMA, Red Cross), local organizations or Go Fund Me pages would be the quickest way.