@Denise Thomas am I understanding you correctly that you want the mortgages under your LLC for liability protection? 

I think it is a good plan when starting out and low on cash.That being said all the above comments are correct.

Everyone is correct in stating you can't market something you don't own.

For those who are familiar with South and NE Minneapolis, that price doesn't exist, when a duplex is listed for 250k in one of those neigborhoods there are usually 15-20 people at a showing and the seller asks for highest bids to be made by a certain date.  

Also I have on the contract pest control as needed which I never did not have one prior to renting only occasional water bugs and a small issue that was corrected immediately.

Right, I haven’t claimed depreciation thus far.My parents are still alive so I guess it would be considered a gift and if I’ve read correctly, their cost basis gets transferred to me except we have no idea what exactly that is.

I am assuming you think you own it free and clear correct.. 

Purchasing involves combing through perhaps hundreds of candidates over a period of months, creating a short list, visiting properties in person, bidding, hopefully winning one, then managing a rehab, and then interviewing property managers, and then hiring one.

Cash on Cash is about 5.5-6% if my math is correct. about a 6% cap rate.

@Manuel NaranjoThe other posters are correct - it is section 121.I think your accountant is having an issue because he is unsure of how to tell the software to exclude the gain on the return.The sale still needs to be reported on the return.