One year we did a cost segregation study on a newly purchased more expensive property to accelerate depreciation for a tax deferment.

I you don't qualify for the 121 exclusion you can still do a 1031 exchange and defer all the capital gains tax. 

This is of course barring your PM agreement.If they don't upcharge on maintenance, and the rents are still at the level you want, I would get that deferred maintenance knocked out then fire the PM.

i suspect you'll say "too expensive," but out of state comes with challenges too, and getting crushed by deferred maintenance and overpriced contractors is actually very expensive.memphis in particular - to be successful there, you'll need a team and a strategy, not just interest solely because it's "cheap" to buy there. 

I have to find out with inspector(s) anything else but I was told there is no deferred maintenance and 6 of the 8 units have been remodeled.

Are you navigating a Sec. 1031 exchange or facing deferred tax gains and looking to understand how to optimize your deductions?

And uses all of the proceeds allocated to the investment portion he will defer all tax. 

There is some deferred maintenance tenant want me to take care of in the bathroom and kitchen in a 2 bedroom/1 bathroom house. 

Seller financing is beneficial for deferring taxes or steady income.

Both seasoned and new real estate investors have a powerful tool: the 1031 tax-deferred exchange.