This may not seem like "income producing" activity at the moment, but it's critical for putting yourself in a position to generate revenue.2) Get to know the buyers in your area. 

I have one advice for you: if you have some capital to deploy in marketing activities to get leads and the patience to wait for over a year or even two to make money, then wholesale. 

But you're total gain including depreciation recapture was $60K so you would end up having to pay the tax on all $60K - no benefit to the 1031.The other question you're hinting at is what if you bought a tract of agricultural or hunting/fishing land that you intended to use for productive use (wilderness activities, rental, agricultural, livestock etc etc). 

Seems like you got a good start :)You can meet local investors both on this site, by being active in the forums, making connections with local investors, and even better by attending local events or real estate meetings.

Staying active on these forums and listening to podcasts can help you as well :)

I don't want to build a team of investors yet but just myself and friend of mine decide to be active investors is there a need to have an attorney close the deal?

Also, investing 3 or more hours away can be quite difficult/stressful if you've never done it before.  

Get either a title company or real estate lawyer involved to handle title and closing.Get an inspection done (I can't stress that enough!)

Not sure of condition or current tenants, but is it crazy to actively pursue this one for a first property?  

*Note: this post is intended for investors who actively DO NOT automatically file a 1040 every year, unless they've incurred a tax liability.I'm wondering what difficulties investors who understand (have read the pertinent details of the tax code) have faced when engaging in investment opportunities that normally require an investor to furnish tax returns, and what solutions have they come up with.From my experience in banking, I understand that institutional lenders normally require a borrower to furnish yearly personal financial statements and tax returns.