Then, move into Show Low STR for two years and Sell for up to $250,000 Tax-free.

There’s a fee for this.

My further step will be to go even lower and take a 10k or 20k loss that I might use for my tax return next year before the hard money debt becomes even more. 

Too high fees, deposits or rent can drive potential tenants away, especially if it's in a tenant's market.

As I was working on their taxes, I noticed that cost segregation was based on $180k worth of renovations while the total rehab cost was $310k.

You live in it for 2 out of 5 years and Sell for up to $250,000 Tax-free.

A 1031 exchange can be a great tool, but it’s typically used to defer capital gains taxes when you’re selling one investment property to buy another.

There are over 20+ active CPAs here in Biggerpockets assisting RE investors with their tax planning.

If we were going to buy a property and put it “under contract”, and a better deal came along, rather than pass on one deal we might present it to a fellow investor and collect a fee from the investor in the process.  

Pretty rare from what I see that cities allow or want this....turns single family neighborhood into multi family and most of the zoning people don't like this.Plenty of issues from their point of few of why they don't like it.....parking is one...now no one parking in garage, and potential for more cars...so now 3-4-5 cars in the street.More taxing on the water/sewer/trash/police/fire/city services.I wish you the best of luck with this.