If you build an experienced renovation loan team around you (experienced lender, contractor, and consultant) you can have a nice support system there to guide you on your first one, which was a big help for me!

I have to admit there is so much to cover and it is a little overwhelming, however, from what I have read this seems to be a very supportive community. 

I am not on the 1031 exchange but I will be providing support for loans, income, etc.Scenario 1: Purchase 1st, 2nd, 3rd property with 1031 exchange X amount fulfilling transaction and all requirements for exchange granted all financing is approved and completed.Scenario 2: Purchase 1st property with 1031 exchange under parters name only, fulfill requirements for exchange, acquire rest of funds with no tax, then complete 2nd and 3rd property transaction with funds on my name only.Scenario 3: Purchase 1st property all cash with 1031 exchange, HELOC on 1st property to acquire property 2 and 3.Look forward to hearing what the BP community can assist with and allow me to learn through this processThank you!

Sell it now, net gain about $40-$60K after taxes, commissions, listing price, etcTo properly and adequately answer this question, one would need to know your strategy and goals.Strategy A is based on cash flow to support living expenses.Strategy B is long term wealth building - appreciation (market and forced) combined with principle pay down, depreciation, etc.If you strategy is A, then you should sell as this will not turn out positive for several years down the road (unless you utilize some sort of house hack play, vacation rental to increase income, or any combo of increasing income and reducing operating expenses - which by the way you skipped a lot of those in your analysis so your negative monthly cash flow is actually greater than you explained.)If your strategy is B, then by all means keep it and enjoy the likely future appreciation, amortization and depreciation deductions to offset your actual loss each month until the unit goes cash flow positive.

If it's an older property, you may be looking at a support system under the floor that is starting to fall apart.

@Joe Jor @Marlen Weber @Brandon McNulty Thank you guys for the support, I truly appreciate it. 

By eliminating "pet" rent and "pet" fees it sidesteps the emotional support animal people.

I am glad to hear that you were able to connect with one of our support members and that the issue was resolved.

Are you asking about using your "SchE income" to support more loans? 

I left as an OS2 and transitioned into first going to school to be a computer engineer, now working as tradefloor support as an IT.