The remaining 1 million have a higher percentage of owner occupancy and also higher median income.

I want to get into the market and begin adding to my portfolio and passive income.

The cost of the rehab is ~$250,000 with estimated ARV of $1,200,000 and the total rent at $13,000, which would generate good cash flow.I make $100k, have really good credit score and ~$100k in savings.

He’s aware there is likely a tax implication on the income of the LLC but main concern is if becoming a part owner would affect his eligibility for capital gains exemption thru 121.

Loss of use coverage provides insurance against the reduction in income it doesn't obligate you to keep the tenants lease going.

It's like playing Russian roulette with your income.

Can I carry over this and apply to the income of the new construction after its rented out?

@Alex BellYou guys make a killer income, congrats!!

You are discriminating against the amount of income not the source. 

And he gets the income off the deferred tax while he's alive.2.