Michael,Maybe you could hire two, see how they do, then give All to the one that meets your expectations, is efficient and returns phone calls

Some condos are non-warrantable meaning you have to use non-government backed loans.

So I offered to pay for the flight, if they returned a clean and empty house.

You might be referring to income / expenses that are reflected by cash.Cash you receive from rentsExpenses that you pay out such as insurance, interest, taxes, etc.You may not have included depreciation expense which would bring your taxable income down further.It may be possible that the negative taxable income would bring your taxable income down.

I hit 100% cash on cash return on all these B or C areas and they often outperform my better neighborhood properties. 

Main questions would be, how long have you owned this and is there any rental income reporting on your most recent return.

There are some accountants out there who say that the very act of doing a 1031 exchange is an attempt to avoid tax and so a 1031 purchase from a related party is a non-starter. 

On paper returns, look excellent but when you put it into practice, you don't seem to get the same kinds of returns. 

The bottom line is that past performance is no indication of future returns.

You'd be surprised at how many people are looking to work with real estate developers to generate returns higher than the market, but they don't widely advertise this.