This fits your dream list of requirements except that the note is taxable. 

Here’s how that works:Depreciation is the act of slowly deducting the initial expense of an asset against your taxable income.

This part can vary by lender...banks and more strict lenders might require 1-2 years of receipt at the new job, while some lenders who underwrite directly to the agency guidelines (like us) only might need to see 1-2 paychecks to show that stability.If your new job will be 1099, then that's a whole other story, you will become self-employed and will need to file 2 years tax returns before you can qualify, and your qualifying income will be your net taxable income (after deductions). 

Purchase price: $51,000 Cash invested: $29,000 Sale price: $179,500 Hello , we bought our first property my wife and i in 2016 in the california high desert it was ony a cash buy so we ended up making a good offer since it had good bones all it needed its cosmetic and some electrical updates, we lived there 4 years for free just property taxes and regular utility bills , we sold it for 179.500 made lamost 90k profit non taxable since it was primary resident and lived there over 2 years .

$200 immediate cash flow a month that is taxable vs. $3,000 a month non taxable appreciation.  

@Bill Nolan @Alina TrigubWhen using leverage with an IRA, Roth or Traditional, your IRA may owe UBIT as a result of generating UDFI, which is a form of UBTI.Those terms (UBIT, UBTI, UDFI) get used interchangeably, but do have distinct meanings.UBIT = Unrelated Business Income Tax: This refers to actual IRA tax liability; the amount that it owes to the IRS, based on compressed trust tax rates.UBTI = Unrelated Business Taxable Income: This is the type of income that generates UBIT liability. 

So...The instant choices boil down to whether the "farmer investor" wishes to create an immediate "taxable event" by selling now, (with minimal tax-bite because of a recent "stepped up basis") and banking the cash for more investment purchasing flexibility in the event of a major crash in real estate and currency values, or...Entering into a tax-deferred 1031 exchange now?

But if I can deduct the closing costs in 2022 that would help lower my taxable income markedly.

If you earn more than that in AGI, then you will need to look at your investment income (again, capital gains, interest, dividends, passive income, etc) to determine your taxable amount.This may very well have an effect on high-income landlords who earn a lot of passive income (this is after all expenses, depreciation, etc).

Can I expense the software development expense to bring down my taxable income from my full time job.