Yes it would be taxed heavily and that would suck if it was not 1031Thanks for your help 

Assuming you can get break even or a little positive equity on what sounds like a heavily leveraged property, chances are you are not going to cash flow enough to make it worth it.  

That is one of the main reasons I have mostly transitioned heavily to the Midwest ( Indianapolis, Oklahoma City, Kansas City, Jacksonville MS etc...).

If it's investing in much riskier, equity in a heavily leveraged ground-up development it might be projected to give you a 300% return on sale in five years if successful (again, regardless of crowdfunding or syndication).

I recently spoke with an acquaintance who sells hundreds of properties for banks and is heavily involved with the entire gamut of the REO business.

For commercial properties, they weigh the building's financial situation much more heavily than your personal financial situation. 

It's a fine line, but plenty of people do it and I don't know anyone that's been put behind bars or fined heavily yet. 

A lot of what you plan to do will be heavily dependent on budget, especially location.

heavily disagree:1.)

The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention.