Are you quoting net cash flow - after taxes, insurance, maintenance/repairs, property management if needed? 

 WE  do both  give me a call and I can explain but depends on where the tax advantage is

@Jeanette LandI always recommend using a tax professional.

One tip I have for you when it comes to finding an agent or lender go to the top of this page under BUILD YOUR INVESTING TEAM and click on AGENTS & LENDERSFrom there you will be asked a series of questions and then you'll be matched with 3-5 agents/lenders.

According to our understanding:1) California does not recognize REP status, but we could claim it on our federal taxes, is this correct ?

Please, share some tips and cite the pages and books on what was so enlightening that one cannot find for free in the forums here or on Youtube.  

However, this means you’ll need to comply with the annual filing, franchise tax, and reporting requirements in both states.

What paperwork should I keep a paper trail of to make things like taxes and other situations better/easier for myself?

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

Now, this would obviously be negatively cash flowing since you would need to pay taxes and insurance.