If you live there 2 years or more before selling you will be exempt from tax on the 1st $250k in profit which is a nice bonus. 

He owns 1031 Federal Exchange and is also a tax attorney. 

Now, this would obviously be negatively cash flowing since you would need to pay taxes and insurance.

Can you either rent out your current property if there’s been little/no appreciation, or sell it tax free?

Since the loan is still in your name, you can deduct the interest you’re paying to the lenderon your tax return... 

I purchased my first investment property through an online auction for delinquent property tax.

Care to tip me?

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

These logs regularly end up in the Tax Court and are usually destroyed upon review.

In non-community property states a husband/wife LLC is supposed to be treated as a partnership  And transferring from a revocable trust (reported on your 1031) to a partnership LLC (that files it's own tax return) is changing the tax payer.