Of course, if it turns out it's a great  rental and you don't need the cash, just hold it as a rental even longer, skip the 121 exemption and use the 1031 whenever you're ready to sell.If it sounds complicated, it sort of is, and you must have a Qualified Intermediary on your team prior to selling your property in order for the 1031 to be valid, so the first step would be finding a trustworthy CPA and QI to make sure all your tax docs are in order.

Unfortunately too complicated to put in a post. 

It's not really that complicated to buy out of state.

For the Average buyer this would have been disaster.. we simply built a new construction on it and did OK.. but this full blown rehab can be a real challenge for many .. its one thing to replace kitchen baths paint carpet roof.but when it comes to structural or these really old houses you get from Charleston north into New England.. etc its far more complicated and risky.

But your situation seems more complicated, so I advise you to watch bp-podcast-109/ and talk with @Scott Smith.

This would be my first deal so I do not want too many complications.

Like @Frank Chin said it can get complicated over the years. 

There is nothing complicated about being a registered agent - you receive an annual report in the mail which you file online once a year. 

I feel that not only do I need to evaluate whether or not I want to invest in a C property, but whether I should invest in multi's at all.....especially one in California that makes the eviction process very complicated and costly.

I'm sure there are some work arounds but it gets complicated and you need to make absolutely certain that you do not do anything prohibited or you will blow up the entire IRA.IRAs are taxed at trust rates.