I am going to build a house on it with cash and live in it.

If you plan to operate this product, you still need to have cash to bring to the table as well as enough liquidity for rehabbing (you can get reimbursed through draws, but you start out using your own liquid).

Hello everyone, I am selling an apartment building in California using a 1031 exchange (to buy property in the Midwest) and am wondering if I can use my passive loss carryovers and disallowed losses for that property to offset any boot because I am planning to use the cash pullout as reserves or repair money for when the replacement property is vacant. 

Or just one of the capital events along with the cash flow?  

I bought a 110k property in cash last March.

I would like cash flow. 

Are you cash flowing the property?

This is where I feel like I messed up as I can't compete with cash buyers, I don't have that kind of capital.

Is that the wholesalers job or the Cash Buyers?

it would be rental property, open for both cash flow and long term appreciation.