In order to defer all tax you must purchase at least as much real estate as you sold. 

Double close: You do actually purchase a property and then sell it the same day to another buyer.

I purchased then started the remodel before trying to rent.

Best toilets I've purchased. 

@Brian DolbeareI have never purchased a property with no off-street parking.

If that investor hadn't planned it carefully and re-invested that money into the property or even the purchase of another then a recapture fee would hit them hard. 

My LLC is registered obviously, then I received a form in the mail once the property was recorded after purchase. 

I'm looking for advice on whether I should purchase my father-in-law's 6 unit apartment in Burien, WA (10 minutes south of Seattle) as my first deal, or perhaps help find him a seller that would pay more than I could and is a couple years ahead of me in REI. 

With that said, investors have different reasons for purchases.

You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.