It never hurts to have an additional set of eyes to look after your property.

Also, for flips, I like to reserve an additional 15-20% in contingency for unforeseen conditions or changes. 

And you are continuing to invest in real estate a 1031 is a good option to explore. 

Additionally, there’s always a risk that any pet-related damages could be hidden under furniture or otherwise concealed, potentially leaving us to cover the costs if the security deposit is fully depleted by other expenses (e.g., damages or unpaid rent).

The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

Additionally, I wholesale deals and we buy & hold in SE Wisconsin.

On the positive side, it seems like you have a good potential BRRRR that you can use to purchase additional properties.

Additionally, collecting the tenant’s portion of the rent (not covered by Section 8) can be difficult.3.

Unlike true multifamily, meaning the county or city has the property categorized as multifamily, you can't use potential rental income from the additional units to help you qualify (if the home is single family per the appraisal, that is).

Are you saying the current property being exchanged has a debt of $200k and you need an additional $200k to purchase the new property?