In general, capitalizing expenses is beneficial as companies acquiring new assets with a long-term lifespan can spread out the cost.So I guess he's recognizing about 1/3 of my expenses and the rest of the expenses he plans to deduct over time for future years?

If you have unrelated entities then yes they could swap properties with no gain recognized as long as valuations worked out. 

Its painfully clear that this is just another sales pitch and step 1 of them getting you locked into a coaching program but I suppose some newer investors still don't recognize whats happening. 

As far as being in the business full-time, yes I recognize that it's much more efficient to be a full time investor (and believe me it's what I'm shooting for) but currently I don't think it's the best option for me right now.

If there's anyone out there who knows about this process and is willing to help I would genuinely appreciate it.

I know there are plenty of lenders to establish a relationship that focus on investors with this strategy, but not all are genuine, fair, and/or truthful.

I recognized the tenants because they had applied to rent from us two years prior.

They will be the only one (outside of you) that will be able to recognize the before/after difference in appearance of the property.

They must plan to be genuinely engaging with their targeted audience.

I am a newbie but hope I have enough self awareness to recognize the faults in my thinking or my prejudices in property types.