@Kezia Edmonson, it's all about the valuations as @Jon Taylor mentioned.In your 1031 exchange you must purchase at least as much investment property as you sold in order to defer all tax. 

If your goal is cash flow, then your best bet may be to live in it for 2 years, and then take that tax free gain (250k single person, 500k married) and buy elsewhere. 

If it's managed well by a professional, you are more likely to succeed, grow an appreciation for it, and maybe take over management some day. 

@John BowensAre you loaning from a pre-tax 401K or did you convert to Roth and then loaning from there?

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.

Insurance is just an expense to factor into your underwriting just like property taxes.

Since tax bills are for entire parcels (typically, though not always) then it is highly unlikely that they somehow segregated the taxes for that small portion and paid it.

Most professionals will recommend a separate LLC for every $1 million in assets but I don't think that's necessary.

They have very professional products, usually for less than $10 and with instructions on how to use the product.

Best decision I've ever made. 4-6% average annual appreciation rate, stable job growth, population growth, drivable to the Bay Area, close to Lake Tahoe, no state income tax, 4th lowest property taxes in the Nation, much more landlord friendly than CA, land constrained meaning limited supply, etc.