Is this even practical?

@Mike Stadel Did you research this at all online??

I'm in the process of educating myself and want to know if there is a good way to practice running the numbers and evaluating properties.

Oh, the joys of online communication!

On a 1099-R, Box 1 for "Gross distribution" is basically "income" on Line 15a of the 1040, right?

But when I do my projections, I always assume the increase in Expenses will be higher than the increases in Rents.Therefore, in my particular calculations, it is always very conservative.Also note that even if my Mortgage payment throws me negative in the 1st year and EVEN if the Expense Increases are higher than my Gross Rent Increases, I will still get increasing cash flow.Given this scenario, you will not that I start out NEGATIVE $133 per month but wind up POSTIVE $1,684 per month.AMAZING when you do the 10 year projections and doubly amazing when you actually put it in practice over 10 years.Keep in mind this is COMPLETELY COUNTER-INTUITIVE and yet it's all about the Math.Again, most people (probably 90% or more) will not realize the effects of this until they do the Math.......

The Service is aggressive when it comes to the practice of basis swapping and the fact that the parent wants to sell at a discount and declare tax will need to handled delicately by their CPA. 

We are just practicing but if someone is interested this doesn't look like a bad deal.

technically yes.. in practice rare..  

I agree with Aaron about going with a beachfront unit, or at least a complex that is practically beachfront vs. going with something that is a few blocks back.