We are a double income earning family and bring in just under 10,000 a month after taxes.

Your “overhead” costs to buy & sell the house + holding costs, interest, property taxes etc, luckily these can be pretty easily calculated, many websites like closing companies will have websites where you can fill out information about a property and it will tell you the costs to buy & sell, loan costs are easily calculable, take your purchase multiply by intrest rate divide by 12, that’s your monthly expenses multiply by the number of months you project the to complete, a good rule of thumb is even cosmetic can easily be 6 months anything more complicated can be 9-12 though all that can very greatly.3.

LLC or not won’t make a tax difference. 

Be sure to diligently evaluate potential properties through inspections, condition assessments, financial reviews, and property tax assessments.

Need to know county, city property tax breakdown, dimensions of a few rooms, parcel ID #, etc.... but again, this is information that a listing agent will frequently leave up to the seller anyway.  

Since we would be using the money in the same manner could we use a 1031 exchange to defer the gain income tax ?

You do not want to expose yourself to the unnecessary (and endless) liability of hiring unlicensed workers for what you're describing as full home renovations.

You would then hold the loan on a 90-95% LTV product at 5% (Which is taxed at ordinary income).

https://www.ewg.org/news-insights/news-release/2024/03/over-240-california-community-organizations-unite-againstLate in the legislative process the tax was slipped into a 2022 law, A.B. 205, authorizing the California Public Utilities Commission, or CPUC, to add a fixed charge to electricity bills based on household income.

You can use the extra income to pay down debt, save for retirement, or invest in additional properties.Tax Benefits: There may be tax advantages to renting out a portion of your home, such as deductions for mortgage interest, property taxes, and depreciation.