But ya have to make some educated prognostications in life.Add this to the information your processing - What your talking about doing is eliminating around $4000 or interest expense (which is deductible anyway so really could be a real impact of eliminating $2800 or so) of debt in exchange for paying over $10K in capital gains tax (don't forget possible state gains tax as well).  

After that is done, head over to IRS.gov and apply for your EIN (Tax ID).

A 1031 exchange would use all of the tax in the purchase of your next property.

Any surprises in terms/fees?

The 15% tax hit is a one time expense, versus 4.3% is annual interest.

This would allow you to defer the capital gains tax, and instead of taking a large tax hit, you would be able to use the tax to invest in a nicer property/properties.

In non-community property states a husband/wife LLC is supposed to be treated as a partnership  And transferring from a revocable trust (reported on your 1031) to a partnership LLC (that files it's own tax return) is changing the tax payer. 

We understand there could be a fee involved.

When you add on your new lease fees, lock box fees, inspection fees etc. the percentage creeps far higher.

Best to check with a tax pro to ensure compliance!