The fact that you’re aware of it and taking small steps is huge!

Be aware of insurance rates, they are higher than most other states.

., some of which you mention, so it seems you must be aware of them.As an investor, your goal is typically  to maximize your return and minimize your risk.  

You might not be aware of the amount of money invested in marketing for a wholesaling operation.

Are there any challenges or reasons why some of these tenants wont be able to pay through the software that I am not aware of?

This is particularly important as you acquire more properties.Transferring the Property: If you're thinking about transferring your current rental property into an LLC, be aware of potential challenges that I have personally seenMortgage Implications: Check your mortgage agreement for any clauses related to property transfer.

I am not aware of any other requirements beyond that. 

.: I'm not aware of any requirement for this.I do provide an application because it has a lot of information necessary for tracking the individual: social security number, driver license number, previous addresses, etc.When you take over an existing renter, I recommend you figure out how to get the entire file from the former manager/landlord.

Does anyone have any ideas on how to minimize that tax liability and still continue with my original intent, or is my only option a 1031 (I'm aware of DST but don't see that as a great option).  

Make sure to the landlord is aware they will need to issue a 30/60 day notice prior to the lease expiring.