Educate yourself first (like you're doing now on the forums) before you pull the trigger on selling this property to buy another one.

@Sonam GillSonam,Your conversion from a 3 family to 4 will require a change of use and more importantly move your unit from residential to commercial which triggers a litany of zoning requirements to conform (parking, FAR, refuse, etc.).

Generally, any cash received at closing would trigger depreciation recapture and/or capital gain taxes to the extent of the cash amount received. 

I don’t have a problem pulling the trigger when I feel like I have enough knowledge under my belt.

Transferring to a LLC might also trigger a "On Sale" clause because the deed would be transferred over to a business from a person.I'd get a umbrella policy though.

We almost pulled the trigger on an offer for this one.

The tenant says that she started a massage business in November 2020 (I know seems to be a bad time for that) and makes 2,000 a month so not sure if I can really count that. 

Your parents signing over their house to you will be considered a gift, will require the filing of a gift tax return (probably not trigger any gift tax), and will reduce your parents lifetime gift exclusion. 

The only unknown is when you are doing a rehab, at what point or how much rehab, triggers the need to add sprinklers.

When you do find the right property for your portfolio, make sure you're ready to pull the trigger and write an offer immediately.I bought a duplex in November of 2019 for $147,000 in Grandview, now worth about $180-190k.