I was interested in something like owning a rental property as a way to generate some additional income. 

Here is some clarification:When property inside of an IRA is financed, it generates UDFI (Unrelated Debt-Financed Income), the income derived from the leveraged portion of the property. 

However, there are still plenty of tax benefits when it comes the income you generate from your multi-family property that you can deduct from. 

The question: A commerical property in a highly desireable location which could fetch $6+ million and generates about $400k after expenses became available and I'd like to add to our portfolio instead of doing a 1031.

In the unlikely event that you are the exception that proves the rule, the rare 18 year old who can actually generate a serious income by wholesaling real estate, your day to day will look like the following: - You will door knock, cold call, send mailers, and otherwise create lists of people who are in the most desperate moments of their lives. 

UBIT is generated two ways.

Do you see these as a way to scale up in size of investments (and to consolidate several properties into one perhaps) and to make the income generated from them as a more passive income stream.

Where are you generating leads and for what end? 

3) How flexible is the contractor about meeting at the property for their inspection to generate a bid? 

A vacation rental could generate higher returns but requires more active management.