Also, great idea to source loopnet for that info.I would definitely hire property management for a property of this size and would vet the PM co. like crazy and get lots of recommendations.Although I was really just interested in analyzing this deal to gain some experience it was definitely intriguing.

On top of this, you are doing your daughter a great service by allowing her to gain real world learning experience managing a rental property - she will learn more valuable lessons from that than the 4 years in college courses!

I graduated college from Mizzou in December of 2017 and have recently gained lots of interest in the real estate market and the potential for future financial independence. 

If I fix house #2, I would gain about 20 grand in sales price, but headaches because I live here now.

It's the perfect time to gain knowledge.

Money can be gained and lost in so many ways... so why not go for something when a person has evaluated the risks and benefits and understands how to minimize risks.

However, generally, if your single-member LLC is created properly and is considered a disregarded entity for IRS and state purposes, the transfer of the 1031 replacement property into the LLC will not cause a problem for the 1031 exchange process or for capital gains consideration.

If your goal is to defer capital gains tax on the sale and use the (as yet) untaxed sales proceeds to buy the business then you can accomplish this with a monetized installment sale.

While there are improvements going on to the E of MLK, how long will it take this area to show gains in appreciation? 

If I sell there's no capital gains tax, if I rent I could get around 1560 a month but it will need a new roof and a/c units.