The software my accountant is using is writing off these losses against my W-2 income which is telling me I am entitled to a refund. 

As long as you have an exit and do not get stuck with the penalties and interest if you do not pay it off in time, its not a bad idea.

They often have off market deals as they have built relationships with their owners and talk about selling, we have at least 5 off market deals.

I am in Florida and I have found off market deals available and moving.  

In every county except Jefferson County, if the assessed owner's name was in the pre-auction advertising, and that was the name called off at auction, but that person died before the auction, then the tax sale is void.

Will you be spending enough to make this its own asset and depreciate it, or will you be able to just write off the total on your tax return in one year. 

You may want to start off with a turnkey company to learn the ropes.

When you sell, the $150K will be paid off at closing, only leaving $350K to be used in the exchange (I am ignoring closing costs in this breakdown). 3.

They're inspecting nearly every home now post-bind because of the difficult insurance environment and ability to get off a risk (flat cancel) within a certain period of time (depending on the state) just after the policy was issued. 

It’s in great shape and I am working with a realtor to get it off the market.