When you do a 1031 exchange does the intermediary ONLY hold your gains on a property or the FULL sale amount?

And as you probably know, a lot of development projects in that area are tied to tax credits, grants, and other strategies (e.g. cost segregation and 1031 exchanges).

Say your getting a 12% on your re and 5% goes to your debt, your still doing better than the stock market average at .

Rents don't keep up with values, you don't hit the 1% rule and you either don't cash flow or the Return on Equity (ROE) is terrible.When you say "paper investing" are you referring to stocks and bonds or are you buying notes?

I have been studying investing in the stock market, and in real estate, relentlessly, for the last six months.

It’s not the stock market with massive shifts in a week or months time, hell even in a days time as was seen in March/April. 

With this increase in rehab costs, when I am able to refinance, then I will still be in the property about $40k of my own money, which is double my max after a refinance.I am thinking about selling or 1031 exchanging this property into another investment property or opportunity.

Find out market value and if your current tenants might be interested in buying it (you can sell it to them for a bit below market as you will save realtor's fees).I don't know US tax laws, but look in the rules for a 1031 exchange. 

I like the 1031 exchange idea, but the time frame to identify and close on the replacement property makes me nervous.

Should we sell at huge loss and exchange for an investment property ASAP as a payment for our lesson?