I received a great document from @Bill Exeter on 1031 exchanges.  

You really,really need to educate yourself on the entire wholesale process before you get other people involved with you.I would strongly recommend you sell your lead to an experienced wholesaler in exchange for a 10% percent finders fee and more importantly,an education.Make them bring you to the negotiations and demonstrate how to professionally conduct business and with the right tools to get the job done.

In scenario #2 you don't have at least 1 yr of stable income.My recommendation:* Scenario #1 - Sell the SFH and do a 1031 exchange into a upscale multi-unit.

Either way, would be great to exchange ideas on the area!

Ok, now that you have taken your initial step, below are some quick links to get engaged. http://www.biggerpockets.com/starthere http://www.biggerpockets.com/ubg http://www.biggerpockets.com/meet Setting up Keyword Alerts How to Use @Mentions on BiggerPockets 25 Tips for Real Estate SuccessREI can be very daunting, but, before you go searching for that 1st buy, please take a few minutes to bone up on the tips in link below.http://www.realestate.com/advice/buying-your-first-investment-property/ However, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

Strong thread here we are getting ready to do a 1031 exchange and we will be looking for a rentals or a multi family.

I'm not an Accountant/Attorney, but in my experience if you are flipping the property out of an IRA, or doing a 1031 exchange, you're going to pay tax on the gains. 2.

I need to set up a 1031 Exchange as well.

These are all pretty straight forward and if you don't place yourself in a position of personal gain, then I appears you would be ok.Common Prohibited TransactionsCategories of Prohibited Transactions In general, the type of transactions that could fall under the prohibited transaction rules pursuant to Code Section 4975 can be viewed in the context of three unofficial categories: Direct Prohibited Transactions4975(c)(1)(A): The direct or indirect Sale, exchange, or leasing of property between an IRA and a “disqualified person” Ben leases an interest in a piece of property owned by his Self Directed IRA to his sonJen sells real estate owned by her Self-Directed IRA to her fatherTodd sells real estate he owns personally to his Self-Directed IRA Carl transfers property he owns personally to his Self-Directed IRA Mary Purchases real estate with her IRA funds and leases it to her mother Kevin uses his Self-Directed IRA funds to purchase an interest in an entity owned by his wife Peter Transfers property he owns personally subject to a mortgage to his Self-Directed IRA.

I've sold quite a bit of real estate and never done a 1031 tax deferred exchange.