and then he is using a 1031 exchange to buy another single family rental, while saving (Deferring) a lot of money in taxes.  

I did this recently by offering a garage parking space in exchange for one tenant handling the lawn care and snow removal at the property.

Purchase price: $65,000 Cash invested: $29,970 Contributors: Randy Charboneau 1 of 3 properties purchased out of a 1031 Exchange package from another investor, using a 40% down payment from my solo 401(k) and a non-recourse loan from First National Bank of America brokered by Mark Robbins (Lending Resources Group).

Purchase price: $75,000 Cash invested: $33,970 Contributors: Randy Charboneau 1 of 3 properties purchased out of a 1031 Exchange package, using a 40% down payment from my solo 401(k) and a non-recourse loan from First National Bank of America brokered by Mark Robbins (Lending Resources Group).

@Barak Schafer, You're looking at a two step process to get to an LLC with a sale and 1031 exchange of your current investment. 

Hey Steve, The most common way to avoid taxes is using a 1031 Exchange and purchase a property shortly thereafter selling a rental. 

Plz advise;)I just completed the 1031 exchange from a 4 unit property I owned into an 8 unit property.

I'd like to roll the profits into the next one, but I've read that you can't roll flip profits to a 1031 exchange.

My guess is that you don't have any tax liability for the 2022 tax year because with a 1031 exchange you didn't receive the proceeds.

As a fairly new investor myself, I will take smaller returns in exchange for sleeping well at night.