I am having a sewer line repair company come out and give estimate to repair vs replace. 

I'd rather replace a $1200 water heater for a $2000 rent than $800 rent.

Only those that legally existed prior to new Codes can be maintained, replaced, etc.

Hey Ram, I'd agree with David, I think you'd like to include a few more expenses like ongoing repairs, trash and replacement costs, plus add in something for vacancy and bad debt, plus add in closing costs. 

Even a typical water heat replacement would set you back signficantly.There's plenty to the puzzle that i am unaware of but with what you've outlined here i would consider passing on the property.you know you need managementyou know you need to remove at least one tenantyou know cashflow is meager after considering management.i personally wouldn't recommend a client take on the risk for such a paltry pay out out of state.Even when considering long term appreciation the average amount of headache one assumes with a property will bog you down before the long term play pays off.

It wouldn't be a way around the regs.Sell would be something if you would make a decent profit and could find something to replace it.If you convert it to a LTR, could you absorb the expenses?

This is when your intermediary would take title to the replacement property before your relinquished property is sold.

Nothing can replace you being in the room when both small and large deals are being talked about. 

Plus the much has to be replaced and the rocks do not.

We did a full remodel on the property, including but not limited to HVAC replacement, electrical panel upgrade and rewiring, and cosmetics.