I understand there are certain tax benefits in starting the LLC in Wyoming or Delaware, however, I am unsure if I need to create the LLC in Tennessee as this is where I will be purchasing the property.

@Manuel De La Cruz Are you using the C-Corp as your property management company, only, or did you also purchase or transfer the property into the C-Corp. 

Just like a lot of corporations are incorporated in Delaware.

But in my opinion... bringing them to your website where you can build credibility w/ them is always the best option... when you bring your unique value proposition and your credibility you start to de-commoditize your service. 

Quote from @Paul De Mesa: But it's actually a long-term rental.

Great idea Matt, only I am leaning towards Robert De Niro or Joe Pesci playing me with a final seen in either the corn fields or the desert with a hole about 6 feet deep.

Tenant-in-Common Interests (TIC) and Delaware Statutory Trusts (DST) are also considered real property for 1031 purposes.Examples of non-like-kind real property that cannot be exchanged under Section 1031 include primary residences, “flips,” stocks, bonds, notes, mortgages, cash, equipment, goodwill, inventory and interests in a partnership.It states single family homes used as rental, but doesn't speak of a timeline.

They will also de-construct for you.

And let's not go down the path of anonymity, WY, DE, etc... unless you have like over $20M of equity and net worth.

I'm not sure how to find the best cities to invest in but am leaning towards DE as I spent time there and have a little experience with the state.