It's almost like they tack on a few hundred dollars to the order and forget to charge sales tax

So, it would then potentially cost you a penalty for early withdrawl and also income tax owed on it.

(d) retained earnings from depreciation use to lower tax burden. 

For tax purposes, you really just need to have everything aligned to the schedule E categories. 

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC (you can elect to have a LLC taxed, as a S Corporation which is a whole other conversation).If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years).

Of course to maximize your tax benefit it needs to be sustainable over time. 

@Armell MayersBigger Pockets is a great place to find a real estate tax accountant.

Texas is definitely a strong market, but keep in mind that high property taxes can eat into your cash flow.

Can provide all the benefits from a cash flow and tax perspective.

The 1031 exchange rule to defer your tax is two part 1) reinvest all your proceeds and 2) purchase a property (or properties / DSTs/TICs) with an equal or greater market value.