If you do a 1031 exchange, you postpone depreciation recapture, too - which is a great tax benefit and a good reason to try to maximize depreciation early.7.

@Rupert GrantGenerally if you're eligible for a Solo 401k, it makes sense compared to a self-directed IRA for many reasons: Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.You can borrow up to $50k from the plan; IRAs do not allow participant loansThere is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)The one exception I can think of is if your primary goal is to self-directed Roth IRA funds.

Most likely you will receive the most benefit from selling and deducting the loss but there may be limits to the immediate deductibility of the loss.

This way, you can let the same money work for you over and over again to aquire more assets, build equity and cash flow while never having to sell this gold mine of a property you have with so much equity in it.A word of caution with HELOCs though, I hear a lot of them may have introductory rate for the first year and then shoot up after that so it may benefit you to have one for a year, then shop around to another bank for another low introductory rate and so on.

I feel like if you get in front of them with multiple options of how you both may be able to mutually benefit, your business has a much higher chance of success.

He has even mentioned he is interested in being my bank, so ever since I herd that I have been trying to research how he can do this to his benefit, and I am also hoping to be able to put low to no money down.What I am hoping is that some folks would be able to point me in some direction of to what to read or where I can learn, and let me know if this situation is impossible or workable.

The reason being that I am buying a property in an "opportunity zone" and can defer taxes on capital gains used to purchase that property based on the benefits of purchase property in designated opportunity zones.

@Jerry Padilla already said this, but at the end of the day, an increased interest rate on a property can be offset by a property that will be generating more passive income to you and expanding your portfolio that, at the end of the day, will work to increase your net worth overall (so long as the numbers in your new deal work to your benefit and specifications of course.) 

We get no salary, expense account or benefits. 

Of course this would benefit them because that means free labor and the ability to scale their business.