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. 

Slow start but hoping to gain momentum.

This is the sum of all of the sources of gain including not only cash flow and appreciation but also depreciation and amortization of the loan. 

.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

Did the proceeds from the sale count as short term or long term capital gains?

Is an IRA subject to capital gains tax?

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

I am looking to gain mentorship and relationships!

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

I look forward to learning everything there is to gaining financial freedom and becoming an investor.