We have consulted a tax accountant who says we will have a hefty capital gains tax should we decided to sell.

I have interest rates of 6 and 6 1/2%, but the current lenders  tell me that there would be little to gain in a refinance.

Obviously the goal with the 203k is to find a great deal so that the ARV really gains us some equity to keep the train moving.

If you were in the process of gaining your first property and were approved for a 40K business line of credit, would you buy a SFH (there are tons of under 40K homes in Memphis, TN) or use some of it as a down payment for a SFH, or maybe take a totally different direction? 

Then you've got tax benefits and potential appreciation to look at. 

This is a commercial property and not a primary residence so how does the capital gains play a part here?

And even if that rental isn't cashflowing, you're still building equity (if you're paying down the mortgage) and may be able to benefit from appreciation someday (not that it should be counted on to appreciate). 

I honestly believe that like in any business the more you put in, the more you gain.

I am reading on some forums where people will fix or do everything themselves and I am wondering how did you gain those experience/skills... especially if you are working full time and doing this on the side?

I'm also wondering if you noticed it be more difficult to gain listings / closings because of eXp.