Having had both I definitely vote for the regular hot water heater with the tank.

The proximity to HD is definitely true.

You are definitely creating a lot more tax liability than if they were to leave it to you at their passing.

Rental income is by definition passive, so it is subject to passive activity loss (PAL) rules.

And definitely keep your “rejection” letter short and to the point.

I have been trying to educate myself online but it’s definitely lacking on finding solid advice.

I wound recommend Wayfair to purchase large pieces of furniture...definitely NOT Walmart! 

@Rebecca Duyon it's definitely a market that has grown significantly since my post. 

I can definitely get you some of my personal contacts that do our rehabs if you need some assistance!

Obviously there are some appreciation and tax benefits, but another investment property will also have those same benefits.Oftentimes, the 1031 can definitely be a leap of faith when you don’t have another property lined up to purchase.