Sure you’ll be taxed on it.

. - If I pay property taxes online (let's say with a credit card), will my name show up as the payor or will the trust/trustee's?

There is an offer to buy but if I include everything I've spent over the years, mortgage P&I, taxes, insurance, HOA, and recent repairs, I will just break even.

Even at that point it was hard to get "cash flow" meaning that the tenant from one unit rent would pay for the entire mortgage payment plus insurance/taxes with money left over (the cash flow). at least in a desirable, secure area of town. 

@Daniel MadhavapallilYou should hire a tax professional. 

With my 40% down payment mortgage with property taxes and insurance comes out to $3600 a month.Current rents are 50% of market value, I'm looking to renovate and bump up to 1800 a unit which is still at least $400 below market value for a 2 bed 1 bath in Morris county.I strongly believe after replacing the roof, repainting the house, minor landscaping, minor kitchen and bathroom updates I could increase the value of the house to at least 580k.

Selling a primary residence and then buying it back as part of a 1031 exchange could raise red flags with the IRS.Your parents have a valuable opportunity to defer a significant amount of taxes by utilizing the $500,000 exclusion on their primary residence.

Second, working with a local real estate professional who has experience and expertise in the Phoenix market can be helpful in navigating the current market conditions. 

As a tax professional I would recommend going with a specialized independent attorney. 

Secondly, the only thing that really matters is how much winds up in your pocket AFTER the property is sold, fees are paid, mortgages are paid off and taxes are paid.