STR seems to have better tax benefits (in the right market) but is it worth it at a distance ???

If 1031 is to be implemented it must be done on the property level.2. 1031 generally does not apply to IRAs since they are tax-exempt. 3.

Ivan, I'm in Tampa too and I'm a lender with formal commercial credit background from two of the largest lenders in the world and 34 years of lending experience.

I bought it last year and thus far have: 1) Appealed assessed value to bring down taxes, 2) Got better (less expensive) insurance, 2) Rehabbed 3/4 units, and 3) increased rents $300-$400 per unit along the way.

I 100% endorse adding in the escrows for taxes and insurance to set the buyer/borrower up for success. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

I am told that they did not have closets as they used to be taxed on rooms that had closets.  

This is tax free. 

You need to have the income and tax liability to support the depreciation.

For example, what is the monthly revenue for the property and what are the "All In" expenses, including mortgage, taxes, insurance, utilities, repairs, etc...