As I was working on their taxes, I noticed that cost segregation was based on $180k worth of renovations while the total rehab cost was $310k.

You should keep a 10-20% margin per clean depending on the market. 

We have a cash purchased SFH in Kansas City MO that we got for $75k cash, that rents for $875/mo (After management fees, taxes, and insurance, we profit $580/mo). 

You live in it for 2 out of 5 years and Sell for up to $250,000 Tax-free.

They pre approve buyers all day that just need to find a deal.

We were targeting Pre-foreclosures to buy subto and sell on a wrap but we were not able to sell it for what we needed.

There are over 20+ active CPAs here in Biggerpockets assisting RE investors with their tax planning.

A 1031 exchange can be a great tool, but it’s typically used to defer capital gains taxes when you’re selling one investment property to buy another.

Also realize that when you refi, you can lose your grandfathering on taxes - where the property taxes may be looked at again with a higher value of your property at the date you refi - it just depends on how the county handles those things.Then there is property management.  

My further step will be to go even lower and take a 10k or 20k loss that I might use for my tax return next year before the hard money debt becomes even more.