If you do not qualify for the 121 Exclusion, you can certainly sell and structure a 1031 Exchange so that you can defer the payment of you taxable gain by reinvesting in two (2) or more other replacement properties. 

With regard to a rehab, is a permit required if you are not doing anything structural? 

But be ready to answer the question of how the ownership/business will be structured.

Structurally sound10. 

I personally believe that having good partnerships can be a HUGE boost to any business when structured properly with the right people.

@Jonathan PonceYou would need to work with an engineer and architect to work out the structural and meeting building codes, especially if you want to do something as cool as the home in the link above. 

I have been in the construction industry all my life and would be more than willing to try to answer any questions structure related. 

I've always been interested in real estate as my dad was a general contractor for almost 30 years (I spent many a sick day, summer vacation, or earning a few extra bucks on the job site with him) and my grandfather before him built large commercial structures.

@Clinton FilesAre you saying you have a loan structured like @Jeremy Pace described or do you have multiple house, each with a different loan that have cross-colorization? 

I want to know how you would structure the deal and if it makes sense.