But since it's your first deal, it might be worth doing just to gain the experience. 

If I know I'm going to have capital gains , would it be best to spend the money that's going towards tax on the gain or spend the money on capital improvements to bring up the cost basis?

Perhaps if the numbers work, could you sell your current home, if you have lived in it for more than 2 years, in order to pay a more favorable capital gains rate, then move into the new house.

If absentee owner, gaining that owner's address and contact information3.

Interview with Chip and JoAnna Gaines.

Gaining my knowledge through many books, there's so much info out there, just trying to soak it all in.

I have never flipped a home or done this before so what are some ideas to minimize the capital gains on the 40k?

When it has gained X amount of equity2.

While I was in the process of doing my first deal I was being very public about my adventures into REI on my Facebook which gained the attention of a friend of mine whom was investing since 2008.

This is going to take a lot of stress out of the process instead of having that 45 day clock ticking for you to locate you new property, and then be forced to buy something you may not want.I agree that you should look into the 1031 exchange to differ taxes on your gains.