Then using the 1031 exchange to take all of the gain from the asset and rolling it into another property and then doing the cash out refinance, which then allows you to take out a chunk of cash without incurring a taxable event.

The LLC is a separate legal entity so a transfer to it will always be taxable.

This use of the 1031 funds would invalidate the 1031 exchange and make the relinquished property sale a fully taxable event.

In an S-Corp, only the REASONABLE wage paid to yourself is subject to SE tax.Example: Say you have $70k of taxable income from flipping after $30k in wages ($100k in income before you 'pay' yourself).

You will need to figure out with the help of your CPA is rental losses will end up reducing your taxable earned income. 

My hope is that I can still take half of all these deductions on my tax return for next year as well has deduct half of the depreciation expense incurred from the rental income to offset my taxable income.

So I just sold a property this last summer and I calculated that my sales cost, less sales costs, minus adjusted basis, was my taxable gain... about $35k in gain.  

Real estate investing within retirement plans can sometimes encounter the complexity of UBIT (Unrelated Business Income Tax), which you will not encounter if using a buy-and-hold strategy within a Solo 401k.UBIT is payable by tax-advantaged accounts when there is UBTI (Unrelated Business Taxable Income), which can result from (a) engaging in an active business within the account or (b) using leverage within the account (known as UDFI - Unrelated Debt Financed Income).

@Michael Bertsch you are correct - the home office deduction will be disallowed and carried forward as it cannot cause a taxable loss.

One of the defining characteristics of an S Corp is that owner-employees must be paid 'reasonable compensation' and issued a W-2.That said, the self-employment tax savings comes from the disparity between reasonable compensation and total net taxable income without considering reasonable compensation.