If it's owner occupied, there is the $250K single, $500K husband and wife capital gain exemption. 

.), as I do not have much available capital. 

As others have stated, you're only allowed to depreciate what you have capitalized into basis.Another way to think of this: are you allowed to capitalize and depreciate appreciation every year? 

I have experienced the issues landlords go through like unforseen evictions and capital expenditures.

Stockton was capital of foreclosure of America then.

@Sean DawsonIf your thinking about doing it in Columbus it might be difficult given the market conditions..I think in most cases besides eating capital gains seller would prefer a lump sum of cash at closing..Sellers would consider a take back note if they have difficulty selling the property, hiding a deficiency or need to unload it quick..

Even if it was legal you run several risks.  1) You would permanently damage your reputation in an industry where reputation is vital to get deals.   2) You risk major tax implications related to large capital gains.  3) Comps are not solely based on on the units you want them to be based on.  4) Even if this hypothetical plan worked exactly as you laid out you would be extremely over leveraged and underwater on the other units as you pulled out falsely inflated equity. 

my plan is looking like a BRRR is the best solution, IF the lender will allow NO money down or IF they will allow a 3rd private loan/family member to chip in the 10% or whatever I need for "skin in the game".from there, after 70k initial capital improvements to get the rent up, I would be 'all-in' (purchase of say 640 + 10 closing + 20 finders fee + 70 repairs) at 740k. 

Approach everybody and ask if they'd like to avoid a large capital gains tax bill, while also receiving a guaranteed check every month, just like an annuity!

Help Guide me along the way I’ll find the deal and do all of the leg work, you help provide the capital.