I guess the subsequent cash flows would have more meaning for highly stable organizations signing leases and thus providing ultra stability to the investment.

Rinse and repeat.Before you know it, you'll have LOTS of units, and you will have avoided taxes along the way, increasing your purchasing power with each subsequent step.

If it's just the the lady and her brother involved, you will probably need both their signatures on the purchase agreement as well as all the subsequent doc's that need to be signed during escrow including the Grant Deed.

So while you will defer federal tax and depreciation recapture you will not get the deferral from gain and subsequent tax due to the state in your case.

This may make them look at your refi or subsequent purchase loan more favorably.The other bugaboo is going to be the timing of the 1031.

However, if all of this is factored into your analysis in the beginning (when negotiating a purchase price), you should have no problem acquiring and subsequently leasing out any investment property with neither money out of pocket or seller carry back.  

After two tax increases and a subsequent rent increase, I only profit $18 a month on the property.

This was the start of subsequent judgments against this contractor as he couldn't pay his subs.  

There is no need to carry it forward into subsequent years.

If you have different questions that go off topic, start a new thread please so people can find the question and subsequent answer more easily.