Hello everyone, I am selling an apartment building in California using a 1031 exchange (to buy property in the Midwest) and am wondering if I can use my passive loss carryovers and disallowed losses for that property to offset any boot because I am planning to use the cash pullout as reserves or repair money for when the replacement property is vacant. 

Or just one of the capital events along with the cash flow?  

I would like cash flow. 

Do we, instead, put as low a down payment as possible (owner occupied financing) and buy several cash flowing REIs to cover as much of the new higher mortgage as possible, using the chunk of equity from the sale of the SFR?

So your renovations will be from cash flow.  

I bought a 110k property in cash last March.

Are you cash flowing the property?

This is where I feel like I messed up as I can't compete with cash buyers, I don't have that kind of capital.

Is that the wholesalers job or the Cash Buyers?

it would be rental property, open for both cash flow and long term appreciation.