Or just pay the taxes - still 10x better than taxed on flipping.

When done right, pairing REPS with strategies like cost segregation or short-term rentals can unlock some serious tax savings.Really like how you framed it, appreciation and cash flow get the attention, but taxes are often where the real wealth is built.

Math being the same or not your future self will 100% thank your younger self for paying the taxes. 2.

Right now, I'm looking at paying 174k-176k.

***  There're zero tax benefits, only tax problems.2.

I pay a significant income tax each year.  

Perhaps I am overthinking, I do have some assets already I dont want to pay more taxes than I have already been paying 22% or more.  

@Perry Stanfield, I wouldn't be concerned about paying off the loan in your exchange because you will have to use all of the proceeds in your 1031 anyway to defer all of the tax.

The costs are heavily run up by the borrower’s ability to take advantage of (1) judicial states foreclosure laws (2) bankruptcy laws (3) we as lenders having to pay taxes/insurance during borrower’s default (4) legal fees we pay to contest BK filings or other delay tactics (5) deterioration in property since loan origination.  

Know this as you go into real estate investing: one of the best tax benefits is depreciation.