Basically, they do not want lawyers to deduct the cost of law school and doctors to deduct their medical school - which sort of makes sense. 

reduces net income to roughly the same as a lifetime annuity.3. 

In theory this would hopefully reduce my monthly rent costs and my payments would go to the new 2nd property to build equity.

Yes, there will be expenses, but they are paid for by your rent income, which really means you are reducing the amount of income.

My personal privacy is not an issue for me but based on the American legal system, lawsuits being reduced to the status of a lottery, I understand why most prefer to hide.

Reduced stress is an excellent reason.

Unless rent growth outpaces inflation, you will either have to continuously reduce your standard of living or get a job.

The property is going to be close to 3 hospital systems with various FSED's around them (I work in the medical field as a radiology manager).

Remember that the basis will be lower as a result of 1031 and further reduced by cost segregation.4.

Having worked in and around real estate including loan side for both residential and smaller specialized commercial (medical), renovation and new construction/new build with a broker & brokerage founder (who has since retired) I know from him that in addition to reputable property managers, contractors and architects we had accountants including a forensic accountant on the loan side and a handful of real estate attorneys with one on retainer.