Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Or, should i do the same exact concept except eliminate the holding company, and simply have 3 independent LLC's, all with me as the member, and the property management company handle all of the transactions and pay the property holding LLCs a fee each month? 

Not saying any of your statements are false but providing some balance- are markets at all time highest percent cash flow negative?

We thought keeping the old townhouse because it can generate positive cashflow or maybe a little negative cashflow if something needs to be fixed.

(if I refi and pull out the equity it makes the CoC negative for the next 3-5 yrs)1031 option: sounds good, but I am concerned about finding the right property in the timeframe and my inexperience with this  creates risk.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Newer House with Debt: If you sell and buy the newer home, you’re essentially starting over with a new mortgage, and that $160/month in negative cash flow may restrict your ability to save and reinvest.

There is a concept in the law I believe called "undue enrichment" meaning that you benefited by something they did. 

Cons: Not a happy industry - everyone has a story or opinion and they're usually negative.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.