Which begs the question, if you are already finding the deal and arranging investor financing why not attempt to carve out a portion of the long term proceeds and enter into a ‘no money down’ investment deal rather than simply trading your value for a quick (taxable at earned income rates) payday?

What is the taxable value of the property today and will it increase after renovations?

Depreciation is a big one that won't reduce your cash flow but will reduce your taxable income.

You just apply the taxable rate to the fully appraised value of the home instead of the discounted taxable value due to the Homestead exemption (if there is one).I would always use the local county site instead of any third party one.There are other exemptions a person can get too, Veteran exemption/discount for example.

I show no taxable income).

Should you decide to sell and then 1031 Exchange into larger property so that you can create additional depreciation benefits, your heirs would still receive a step-up in cost basis upon your death so that they would not have to worry about the taxable gain.  

Should I be reinvesting my cash flow into my taxable investment portfolio to help support my goal of early retirement?

Since this is effectively a cash-out refi, it is a non-taxable event. 

The non-taxable adjusted basis for the investment percentage must be surpassed in the value of the acquisition property before gain even begins to be deferred.

Business owners who buy their own builder are best suited for this strategy because they can raised their own rents to use up the extra losses and lower their own taxable income.