Offering a streamlined process, no repairs or renovations prior to selling, no market costs or agents fees for my family member, in return I will gain invaluable experience in the market and in the field along with providing my family with wholesale services.

The opportunity cost of losing potential market gains in your retirement fund should also be considered.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

If you do place the property in her name, then inherit it later, it does allow for you to receive a step up in basis at that point, allowing you to sell the house shortly after her death without paying capital gains tax.5. 

Quote from @Joe Paasch: I have joined this site to gain important incites, discussions and plans to build a successful portfolio.  

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

Real estate is basically an income producing and or capital gain producing investment.  

They gloss over the actual REI experience only to have people pay $10k for it when you could have simply put it into a property and learned on your own to gain experience.

How much weight do you give to the cash flow benefit of cheap debt when the property is priced above market?

@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.