With more significant IRA capital, it might make sense to evaluate a self-directed IRA and have the IRA invest in real estate rather than have your available capital significantly reduced via taxation.

Also want it to learn about 1031 tax exchange to minimize my taxation :)

Totally with you on the taxation issue, but thats a whole other topic we could go for ages on! 

That are tax deferred so you find a buyer who wants to buy yours that is willing to co-operate with a 1031 and a seller that is willing to work and then you move from one into another without needing to pay tax at that time. 

However, I am near retirement age so the homestead exemption and no taxation on capital gains comes into play.  

I have been setting money aside in my LLC for vacancy, repairs and CapEx in the future. Is that money taxable at the end of the year, and if so, are there best practices for how to handle setting the money aside (i.e....

Who would buy at that level of taxation?  

The only way that I flip a property is to offer to sell it with owner financing after the tenant has been in the property for at least a year (avoid capital gains taxation). 

You just can't have boot if you want to defer all taxation on the sale of your current prop.

Is there any way to buy the new residence and convert existing to rental property and defer taxation?