If you use a pass-through entity such as an S-corp, all your net income is taxable anyway and self-employment income taxes also apply.  

If you transfer property in or out of a corporation, it is a taxable event.

How much of a price decrease would I need to qualify individually.

It would decrease your earnings, but would allow you to get started with less risk.

So yes, anything I earn is taxable income. 

In other words, you may increase cash flow, but you decrease cash on cash, a double edged sword.

Presently, I aim for a 50/50 split between physical REI and Stocks/Bonds/ETFS in both my taxable investments and IRA.Got more questions, want to meet people?

It's taxable going in, but as a 1031 you are delaying that tax, but when it comes out it is in the form of a loan...so it isn't taxed...and your tenants are paying off the loan for you.  

In 2014, within my Solo 401k I converted $15,000 from the Traditional Bucket to the Roth Bucket which I know is a taxable event for that year.  

Getting this done is often where experience counts.If you find a knowledgeable REI partner to help you with the first 5 or 6 deals, it will be worth whatever amount of the profits he/she chooses to take as it decreases your your learning curve and the probability of making a one or more very costly mistakes.