Other questions to ask is whether the property has a current tax exemption or tax abatement which is set to expire?

I'm Mark, I've lived in the Phoenix (Cave Creek specifically) area for over 20 years and will soon be graduating from ASU with a degree in Medical Studies.

I will recommend you reach out to a CPA and work on tax strategies to try to reduce the capital gains if you can.Rolling over capital gains as you mentioned is a 1031 exchange used to defer capital gains and purchase another property.I know you want to keep property #3, but if you lived in this property for at least 2 years in the last 5, then you can sell it and be exempt from capital gains taxes up to $250k if single and $500k if married.Best of luck!

I am currently working on building a strong base of capital through my medical career.

., IRA deductions, personal exemptions, itemized deductions, etc.) in the carryback year,4. the carryback of the NOL generates alternative minimum tax (AMT) in the year to which it is carried, or5. the NOL is small and it is not practical or cost-effective to carry it backIf you ignore the issue above. 

You have to live in the house to have a homestead exemption, so you need to remove it from the rental and pay your taxes. 

This is a side hustle for me as I’m a Sales Manager in the Medical Device space full-time.

It has several major advantages over SD IRA such as contribution limit 10X higher of an IRA (up to $58,000 for 2021), exempt from UBIT on leveraged real estate, no custodian needed = checkbook control and low cost, ability to invest tax-free utilizing Roth sub-account, and most important for you is loan feature.

And that is not exempted in the primary residence sale.

While Pete may very well get a judgement he is aware his likelihood of collecting is very very low  In Texas, we cannot garnish wages nor attach a lien to a homestead and the chances this contractor owns non exempt property is low at bestWhat do you think @Mike Reynolds?