The eligibility matrix shows a distinction between 1, 2 and 3-4 units right?  

The key is that each tax payer purchase at least as much investment real estate as they sell.However you configure the sales (and each sale is a separate distinct exchange) does not matter as long as you take title to at least as much real estate as you sold in order to defer all tax.  

I realize many people have their properties set up as a distinct/separate entities, LLCs, etc.

There is a balance of investment and danger that must be felt out.

(adult being an important distinction, I didn't get allowance when I was a kid, ugh) I'm thinking what I can do is let my sister list it, have her figure out what market value is so I don't have any family battles over fair value and her time renovating it.

My wife and I feel electric is more dangerous because the surface could be hot long after you turn it off and you are more likely to burn food because you cannot control the temperature as well.We see valid points on both sides of the argument so would like to know what you all have in your rentals and for what reasons?

This is dangerous advise to give to novice investors.

When it gets airborne then it's a danger.

I don't think seeking appreciation is purely speculation but seeking appreciation while having negative cash flow can be a dangerous game. 

C = lower middle class housing, more multi-family mixed in but decent places, some crime but low-level stuff nothing dangerous or violent.