I have been googling all day and my 1031 agent is lost on this and is pressuring me to identify additional properties in the next week before my 45 day identification window closes.Any help regarding this would be greatly appreciated, thanks.

Why is the renter paying your down payment and agreeing to buy at a $30k premium in 3 years, plus shelling out an additional $500/month until then. 

We pay $750 extra towards the mortgage and have annually made $5000 or $6000 additional payments to the mortgage (4% 30 yr fixed). 

That involves investigating all of the associated costs of the conversion itself, the time to complete that conversion during which no rents will be coming in but there will be the usual carrying costs, and the potential reduction in today's cost the landlord pays for the centralized utilities, and even the possibility of having a difference in rent.

It is an additional tear down cost to get the land grade ready.

With the work that I have been doing (new construction, addition, full Gut, Renovation) my costs are roughly $170/sqft (depending on finishes, this was a really nice finish look) $120/sqft , $80/sqft, $70/sqft... in that order.

I work as a software engineer but I'm looking to grow a real estate portfolio to build additional income and wealth over the long term.

Those items are currently deductible and, in addition, not subject to depreciation recapture later on.Ryan, it is common for CRE investors to use cost segregation to eliminate passive income and not uncommon to use it to offset earned income for those with the real estate professional status that you mentioned.

Michael,I agree with @Eric Weireter and @Christian Hansen.. with an additional thought/caveat that you are going to be buying at or towards the top of the current market cycle (in my sometimes-humble opinion).

@Clyde StackhouseRenovation expenses prior to having the property "rent ready"should be capitalized and depreciated as an addition to basis.