Sometimes you need to make mistakes to get ahead and get wiser.

So that's where I'm getting around $2k net "profit".I am willing to just go ahead and pay the taxes on it, just not exactly sure how to go about that as I've never sold a property I didn't live in. ie, I've never paid capital gains taxes.

Do that every day, or even most days, and you'll look back and find yourself well ahead of the pack one day.I promise.We're here if you need us.

You just need to make sure you water heater is double strapped, make sure the appraiser has access to the attic for a " head and shoulder view " Also make sure all flooring is covering every inch of the base or concrete.

If you have additional cash to put in, you don't need to have debt at all, as long as you're not coming out ahead in either direction (less debt or more cash in your pocket).Here's a quick explanation: http://www.exeter1031.com/article_1031_exchanges_d...I also like how this site worded it - you have to replace the 'value' of any debt you have in the relinquished property, the IRS doesn't care how you replace it (debt or equity). https://www.ipx1031.com/replacing-debt-in-a-1031-e...Hope that helps - but, Bill, please correct me if I'm wrong!

I assume the bank will do this appraisal ahead of underwriting the original mortgage.Your best bet is to have a conversation with a local lender about the FHA 203k program.  

I don't want to rush in and make unnecessary and avoidable mistakes.Thank you in advance!

Thanks ahead of time for taking time to share your thoughts...PM me w comments you don't want public.

I am eager to get started but do not want to rush into it without the proper foundation.

Thanks Rush.