It’s usually best to open a separate business checking account so your rental income and expenses stay organized and away from personal funds.

I financed this property using down payment funds from 403B and a local commercial bank. 15% down from personal funds. 85% down from community commercial bank. 3yr balloon, 20yr amortization, 7% interest rate.

And I could use additional 200K or so to fund my next investment property. 

@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.

But, if a cost-seg study is done on the old property, you can manage Sec. 1245 recapture tax by doing a study on the new property to confirm it has as much or more Sec. 1245 property.You cannot swap a fully depreciated gas station for a raw piece of land and avoid recapture - you must replace all the 1245 and 1250 property.3) OZ - Sure you can defer your capital gains for a few years into an OZ fund, but the magic of OZ investments is the ability to achieve tax-exempt growth after a 10-year holding period.

We look for good school systems, low crime and desirable neighborhoods.

However demand is very high, especially for section 8 which also doesn't pay very well because government funding is one of the lowest for Puerto Rico.

Quote from @Jules Aton: When I did a seller finance deal years ago on what would become a long term rental I bankrolled the rehab funds then re-financed when it was finished.

If your Realtor is anything like me, they want to spend any marketing funds where the most eyes will be. 

If they don't NEED the money for a down payment elsewhere, the income could certainly fund their payment at a new home, rental or retirement home.