Ok....The house was cruddy, the garage contained this (1955 Ford Fairlane) Original engine and authentic 1955 license plate. 

$511 after expenses would probably turn into negative cashflow when you account for vacancy, repairs, CAPEX (although that will be lessened if you are replacing the roof upon purchase), and property management.

You bring up some good points on the maintenance and replacing tenants I haven't thought of before and will keep that information in mind :)When budgeting for the PM fees when running your numbers how do investors budget that first months commission?

In my lease agreement, tenants are responsible to replace light bulbs as they go out.Some of them buy and put in LED bulbs, and when they slide the dimmer switch up and down, they either don't dim, or flicker. 

Holding for incremental increase in value over time is one IRS definition of holding for investment.Any type of real estate held for investment can be sold and replaced by any other type of real estate to be held for investment. 

Last inspection on a property the furnances needed to be replaced (we didn't go to renegociate we kept with the current price)Please correct me if I'm wrong and that policy turns off agents. 

I show before/after pictures showing all new flooring, kitchen, baths, etc.You want a good condition rating and don’t assume the appraiser will know that you just replaced the roof, put in new counters, etc.Tell them everything!

The A.C. system ended up going bad in the house before we got it rented out so we had to replace that and went ahead and did the furnace as well which set us back $4,000.

they purchased the property to sell and that disallows it for 1031.The more proper way to do this would be to sell as yourselves and buy the replacement property as yourselves (letting your son help direct what you buy). 

The plumber replaced a screw or two in the hot water tank and told us that because out unit was far from the heater that may be the issue.