If this is the case then I don’t owe capital gain taxes because I paid more to purchase and renovate the LA property than what I didn’t spend in the 1031 exchange?

For 2024, I will have a significantly higher W-2 income (600k) due to unplanned stock option income (company I work for was purchased). 

Purchase price: $151,000 Cash invested: $60,000 Last year I bought my first investment property, a duplex with 2 bed/ 1 bath in each unit.

Also people who make money by having people purchase STRs have vested interest in under representing the associated risks.  

You can move on from there and purchase a SFH if you don't like sharing a MF. 

Okay, so you specifically want arbitrage instead of to purchase something?  

When trying to do the deal analysis on my current property, it’s asking for the purchasing and closing costs.

And the IRS requires that all of the proceeds from the sale be used in the purchase of their new property. 

There is some purchase transactions and still private work (as I noted above). 

I would try to do 80% purchase loans on both.So 70k*80% = 56k loan amount 14k down payment + you will also have closing coststhen 120k*80 = 96k loan amount and 24k down payment + your closing costs So you will have about 32k - closing cost and loan costs for an additional investment