I have a follow up question as I have 3 young children of my own and I am always looking ahead... would it not be possible for the parents (investors) to just simply do the 1031 on their own to simplify taxes. 

And I have a mortgage for around 160k (little over 20% equity) Could someone please simplify the processes the easiest way possible.

@James Liess I'm not too familiar with NJ but I do run a Property Management Company called Simplified Management out of the Greater Boston MA.

If you were looking at a 20-unit commercial property you might look at a much more extensive round of documents, but for a 1-4 unit you're still in the residential world and the open market tends to simplify the sale process for 1-4 units.  

I am looking to start mailing out to specific areas/owners that may be more interested in my offers, but trying to simplify it as much as possible.

Typically, it’s set at one months rent, in order to simplify collecting one month of unpaid rent.

a good startup lawyer will usually charge a flat rate for your first year you don't need to partner with a lawyer a retainer agreement should not cost over $5k for the first year of organizational expenses. after your first year, investors should be handled with an online portal like https://carta.com/ to manage your Cap tables and simplify your back office work

If not, going all electric would also simplify the utilities. 

As much as possible I'd recommend getting really clear on your goals in life and how real estate fits into those, and then iterate from there.If you are buying at a distance (specifically you're not moving from house to house and collecting houses as you go) then it would be a great simplifying factor to buyer AN asset or two with many doors, but there are other ways you could structure it so that small multis are the way to go.So, back to the root . . . what do you want to accomplish in life, and what role does real estate investing play in that?

@Laura Chevalier about your original post, I would simplify it the arrangement   1) the business should be capitalized to the extent that neither of you need to contribute additional funds on a monthly basis   Capitalize with adequate reserves and pay monthly expenses out of the cash flow.