A generic post to help anybody doesn't help anybody because we don't know what you can do and we don't know what you want to do. 

You can use cash generated from the losses if any to supplement your 1031 purchase.  

My older brother, who is currently flipping his first home in Philadelphia, enlightened me on the possibility of real estate as not only a supplemental income but more so a way out of my house via house hacking.  

Unless Chicago experiences similar appreciation as LA, which I don't see based on pre-recession vs. post-recession median home sales price numbers, the implementation of a Rent Stabilization Ordinance will discourage investment from buy-and-hold investors, who will start to see a squeeze on cashflow (restricted rents w/rising property taxes) supplemented by sub-par appreciation gains.

I have recently decided that I must supplement my current government income through passive means so that I can set myself up for a great position to "escape the rat race" when I transition to civilian life in a few years.  

Hello BP Community,I'm working my way through the "9 steps to own a rental property" video series and I've purchased one house already (I know, reverse order).The question I'm now thinking on is "alternative or supplemental income".  

Please don't make generic statements.

Then, supplement with your own research.BPO's are beyond worthless.

I'm definitely going to stay on bigger pockets because this is a very powerful and free tool to have, but I'm also looking to supplement this really awesome tool with other tools that are out there.  

Hello Bigger Pockets community!A while back I posted a question about how to get my start in REI, specifically regarding the impact of a real estate license.  I got a lot of great feedback!  As I sit on the topic some...