However if what I read is correct I would only get 240k out of it - correct?

Food for thought ...

Your math is correct.

So if I'm understanding you correctly, you aren't really suppose to do a 1031 on short term projects, but I may be able to make a case for it because it wasn't my intention?

Andy M, Commercial lenders do care about the income in a property, and if that's the only income you have, that can be documented consistently, they are going to be concerned that the money will go for food instead of their mortgage payment.You're also going to have trouble if you try to do this under residential guidelines, for those same reasons and more.Hard money is not an option for you because 1.

2 rooms of carpet were totally ruined and had to be replaced, there was dirt and cobwebs in all of the bedrooms, windows had been left open and rainwater allowed to come in and stain the walls, hundreds of gouges and anchors left in the walls, oven dirty, floor and wall behind stove and refrigerator had a half inch of dust, dirt and food, etc, etc, etc.So, needless to say, I've had to spend a considerable amount of time and money getting the place back into rentable condition.

You can also take comfort in knowing absolutely everything is being done correctly when marketing a property.

Matt, while you're correct, it is only to a degree as Phillip points out.

No one will consider me because debt to income ratio but yes you are correct this would definitely help my ratios after a year on my tax returns.

You will only be taxed on the profit provided your return is prepared correctly.