He is a single person, so his deduction caps out at $250k, but he has made additions, garage apartment, extra rooms, add-ons, etc. that should help eat up his gains, and the remaining gains we can setup owner financing to defer those gains.

@Elizabeth Aguilera I came across their add on the internet as well.

What add-ons if any?

Just add one more line next to assignment fee stating how much should go to agent as commission?

I think we are going to add the 6th bedroom and add one bathroom downstairs.

We are looking to buy our first rental property, and we plan to add on over the years and hold for cash flow.

Not to mention all the add-ons make it more valuable.

I just got an insurance policy on the place (i have $300K of liability) but I was concerned that the policy is in my own name  and not the name of the LLC (my LLC  is listed as an addon party).  

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

Withoutknowing the details, I cannot suggest which would be right to add on.