(gross rents $4900; 8% PM; mortgage+insur+taxes = $3600/mo).

I have a followup question - I will realize a lot of capital gain from this home in Idaho, so I think unless I purchase a new primary residence I will have to pay that capital gains tax. 

That immediate tax savings in the new property is better than the infinite tax deferral of the 1031 exchange.Some questions:1) why use an irrevocable trust?

We pay payroll taxes and workers comp, we comply with state and federal laws regarding work place safety, PTO, vacation, labor laws et al.

High taxes.

You could look into forming a C Corp as an alternative way to own this property that could affect your tax returns differently, I am not a CPA or giving tax advise.

This will also allow you to avoid taxes on the sale.

I'm assuming you are arriving at your cash flow number by applying Gross income - cap ex, maintenance, utilities, vacancy, tax, insurance, mgt, landscape/snow & Debt service?

How is it a tax strategy though?

We had 5k left on the grant money that we still owed, but we ended up paying it through the HELOC.