If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

Take the tax free sec 121 first and then 1031 the leftover.

To avoid that, set a firm, realistic budget from the beginning and make sure you stick to it.

In US tax law, the depreciable lifespan of an asset is defined by its MACRS classification which stands for “Modified Accelerated Cost Recovery System.”Under MACRS, depreciable assets are assigned to different classes, with each class having a specific recovery period.

In order to defer all tax you must purchase at least as much as your net sale ($500K ish). 

When in Due Diligence have a thorough inspection and get estimates for any work that is needed now and potentially in the next 3-5 years. don't forget about the tax benefits to doing the work upfront.

Once you file your 2nd year of tax returns, you may now be able to qualify for Agency Loans (FHA/Conventional).

Not worth giving up our citizenship to avoid taxes.Process:      1.  

I had already sent a certified mail with return receipt which she is avoiding.

But, I suggest you start off with www.RipOffReport.com to see if there is anything obvious to avoid.