I went on Zillow and found this 1900 square foot house with 2 bed, 1 bath and a nice floorplan in the listing.

I have an opportunity on a 12 unit property but being in SoCal and never setting foot in MS I wanted to ask around 

My understanding is the cost goes from roughly $1,200 for a normal 1031 to about $5-8K for a reverse 1031.  

Second, they are tax advantaged just like normal real estate with annual depreciation.

I normally do not encourage people to forrm entities for real estate, but if I were investing out of state I would have the out of state investments placed in an LLC chartered in that state. 

If it was me...I'd check with zoning to find out how many dwelling units I could build, and I'd find what the requirements are for those units (type of house, height and setback restrictions, etc.).Then I'd find out what local builders think the cost to construct would be - just get a cost estimate per square foot for 2 or 3 different levels of finish.

Another thing that my brain keeps milling on is the fact that if in a normally purchased deal, I work hard and pay off a 3 million dollar building in 20 years, and then don't pay my 80k annual property tax, I'm going to lose my 3M building that I "own" but somehow don't really actually own.

Take the few extra hours it may take to originate the bank loan and divide it by the added finance charges and its normally more than most borrowers time is worth.

Plan my next day 6 most important tasks - I've been on top of this, but still a challenge to get them all crossed offPlus, most importantly, we have 4 projects here in Chicago we are working to bedone before the end of the year so we can start some new projects off on the right foot!

i.e. longer than normal vacancy, bad tenant screening, poor maintenance, skipped rent payments, etc.There could be a handful of reasons why it lost it's ability to cash flow.