@Jeanette LandI always recommend using a tax professional.

To markets where you’ll gain long term tax free wealth. 

Might be an additional cost there.If units are updated, capex items look good, leases and tenants look solid, and there are no other regular expenses besides the 5200 in insurance/property taxes then I like this deal.  

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

Vetting tenants on my own to avoid paying broker fees is the way to go

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

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.

We only needed to pay earnest money and a portion of the closing fees bring upfront investment to 12-15K.

Hi Steve, where did you get your property tax estimate from?

Agreed - plus two additional thoughts:1) I always recommend having your CPA also review the drafted operating agreement for the tax issues.