Otherwise, qualifying as a real estate professional will be for not because you won't be able to change the losses from passive to active (which goes against other active income) 

In a 1031 exchange, would I be able to apportion the entire amount of the proceeds toward the investment (rental) unit so that I can qualify for a full exchange and effectively defer 100% of the gain?

At this point I am trying to gain insight on if I should look for another contractor to finish this job (the additional bedroom) or outsource specific task like for example electrical to skilled tradespeople and complete the task I am comfortable with doing myself.

Had a good bit of interest, but no one who actually has enough income and credit and job history to qualify.

Quote from @Elealeh Fulmaran: With no capital, pick the path that builds skill, credibility, and steady cash fast: house hack a small multi if you can qualify, then stack cash and experience into your next duplex; Airbnb arbitrage can work but adds lease and vacancy risk if demand shifts; laundromats can cash flow but are a full-on small business.

If the Tenant Buyer walks away from the deal I get to keep his Option payment, since it is non-refundable and I sell to another Tenant Buyer and get another Option Payment usually about $20k to $25k.I encourage buyers to get qualified for financing, give them a mortgage broker contact and to plan their lifestyle to be able to get a loan to exercise the Option.

It's a great resource for learning and for connecting with others who are doing what you want to do, and local folks with a range of experience and skills.

@Robel Nessro if you're majoring in something like business management/finance/business, you'll certainly learn a lot of skills that you can transfer to numerous branches of REI...So, that type of college degree can give you multiple points of leverage (it can help you understand REI, while also helping you understand how to operate other businesses, while also qualifying you for W2 jobs--so, you can reap multiple rewards and have multiple options just from one college experience--that's great!)

I know you’re hesitant to leverage your primary home again, but there are actually a lot of ways to make this work:Since you already have solid W2 income, lenders will view you as low-risk, which helps you qualify for conventional or DSCR loans without tapping your home again.

My wife is a stay-at-home mom but handles leasing, tenant issues, repairs—basically runs the rentals.We’re exploring if she can qualify for Real Estate Professional Status to offset my W2 income.