This might make sense, but again, you are just deferring the taxes and now pushing tax from capital gains to ordinary income. 

Meaning you get 4-5X the depreciation to defer your income from being taxable.

This kind of investing is usually short sighted and focused only on immediate returns without taking into considering long term vision and investment.Excellent point about trying to put Class C tenants into Class A properties and vice versa.The first one will create lots of vacancy, deferred maintenance, loss of rental income, increase in evictions etc. 

Pros - guaranteed rent, tenants stay longer on averageCons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)

I just want to get the management side of things right if I were to commit virtually all of my resources to it.Best,Dustin The rule of thumb is somewhere between 80 and 150 units is when you will need FT maintenance (depending on age and amount of deferred maintenance). 

Blocks away from Seton University, one with 11 bedrooms and 4 baths and the other with 14 bedrooms and 4 baths.Both show signs of deferred maintenance but one more so than the other. 

You will defer your house to these systems in place, but it's your job to keep check on them. 

But maybe it's deferred cap ex looming, neighborhood or regional demographic changes or or or ......!

If your parents do not have experience and you are eager to learn, you should come up with a strategy with your parents so that you can start managing the existing portfolio and finding a way to grow it.First and foremost I would maximize the property as much as possible now.How well is it maintained - any deferred maintenance? 

Selling the property within your Solo 401(k) and returning the proceeds to the account simplifies compliance and ensures tax-deferred growth (or tax-free in a Roth Solo 401(k.)).