If this is the case then I don’t owe capital gain taxes because I paid more to purchase and renovate the LA property than what I didn’t spend in the 1031 exchange?

Speaking for myself I’m just planning to have to live there for more than 1 year and make sure there is room to raise rents, for example spending a few thousand to bring a washer dryer connection to the complex if it doesn’t have one could be a great cash on cash return if you can raise rents maybe $50/unit on the next turn. 

We just helped a Florida client with a ballon coming due at the end of the year on a jumbo refi, the borrower had some payment shock so we structured a ten year interest only payment since they plan on relocating within the net 3-5 years.

My plan will be to purchase a vacant land with cash and finance the home build through a private money loan.

Question: I was planning on closing the business. 

Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away.

Brrrr’s you have to be careful not to spend to much on the rehab.

I plan to live in the house for two years, renovating some.

Get one as you will receive stepped up basis for tax gain purposes.Next decide with your sister on the plan.  

Sounds like a plan.