The seller could include the SCBN inside the 1031 Exchange, but this gets significantly more complicated. 

But the main thing here is that it's your first flip and is already a little bit more complex/complicated than your traditional flip.

Still a complicated process but one with a solid road map from the IRS. 

But what you're finding is that it is still a fairly complicated structure. 

@Jessica Walker if you plan on solely being a wholesaler then I wouldn't recommend getting your RE license, it just makes things more complicated.

I need an attorney to help me as the landlord with a few complicated issues, that I’d rather not get into detail here.  

To add more complication, some states Sol begins when the loan is accelerated.

A little confused over the approach and do not want to create unnecessary work by doing something wrong.

It could be something else which might complicate the deal but also adds opportunity.

Capital improvements get added to your basis.The rules for handling converting a residence into a rental property are complex, and, having never dealt with them, I don't understand them.Your situation is further complicated because your father is giving you this house.