A 1031 exchange would allow you to sell the property and use all of that equity and deferred tax from the profit to purchase something that would produce better cash flow from the beginning.

We do get a better fee/split structure, and that's a fair trade for the extra work of managing a large investor base and it's associated extra accounting and tax reporting overhead.I also find the advice in the OP to be contradictory. 

That's the tough part...we really like them and want them to stay, but we got creamed on taxes this year, so we do need to charge more to make it balance.

A lot of out of state investors like the good land lord laws we have a lower taxes. 

I am 19, and currently a second-year college student pursuing a Bachelor of Business Administration in Accounting.

Giving for a tax write off is giving to receive and that's not offering first fruits. 

That's an interesting point about Texas taxes!

Always happy to help with any questions tax related.

Happy to connect and be here for any tax questions you may have.

We would only plan to manage our own properties.Would there be any tax advantages, or any other benefits, to starting our own property management company?