I'm trying to figure out a way to utilize a large storage building at one of my MTR listings in Memphis.

Had to negotiate to 999,000 only to stay under the NYC luxury tax.

So the question becomes based on their individual and personal tax situation what is the estimated tax burden they'd save? 

Tax-Free Exchanges: While 1031 exchanges aren't available to SDIRAs, the tax deferral within the account means you can sell property and reinvest proceeds into new opportunities without immediate tax consequences.

Most of my renters are nurses, engineers, and tax payer funded employees (Government workers). 

Mostly because the tax incentives are *insanely* good. 

Being a real estate professional allows you to treat the income as non-passive, allowing higher high income tax payers to pay less in taxes.

Post Dodd Frank sellers have continued the same bad practice of selling houses to occupants with financing at selling prices that are way high, can't be justified via any type of 3rd party valuation (appraisal, zestimate, tax value, even recent sales in the same area).   

Of course to maximize your tax benefit it needs to be sustainable over time. 

Yes, property taxes are higher for investors but not terrible.