From the `1031 perspective only the contribution of a previously exchanged into an LLC or other corporate structure does not have to create a taxable event - particularly if you're simply creating a disregarded single member LLC.  

It was a breath of fresh air. 

Trying to educate myself on all the rules that I need to follow from regulatory perspective before the property is rented.  

@Bob Asad While this negative cash flow scenario presents challenges, I am of the perspective that it doesn't necessarily mean the investment is a bad decision for you.

@Jared Schweiss It does not increase "re-sale" value, although I could see a tax assessor increasing the value of the property to charge more from that perspective. 

Is that all that's required to from legal perspective?

From there you should have a much better perspective as to what parts of the city make sense for your budget & risk tolerance. 

Thank you all for taking time to share your perspective and experience 

Replace the blinds, get rid of the carpet, change out the light fixtures, and do a fresh coat of paint.

I'm starting fresh, but I'm ready.