In that event you are taxed on the difference but still get to shelter the remaining profit in your 1031.3.

However, starting from Dec 2018, ABC Baltimore stopped paying us rental guarantees and the house remained unfinished without required city permits to rent the house.

Umesh,The only time husband and wife can exchange property held in their individual names and acquire property in an LLC is if they live in a community property state, and unfortunately , NC is not a community property state.Since you and your wife are the underlying taxpayers, you need to remain the underlying taxpayers on the replacement property, so buying in a MM LLC (partnership for tax purposes) does not work.Here is a solution:See if your lender will allow you to take title using two (2) LLCs.

I would use some private money lenders who pay for the whole purchase price, then either ask for 5k in repairs or put the remaining repairs on a low interest credit card and pay off quickly. 

I keep 5-10% for maintenance and CapEx after paying mortgage and take away remaining amount.

I can see the thinking behind all up front from the seller's standpoint but from the buyers it's a way to be serious without tying up the full EMD if the deal gets weird and EMD tied up. 3 days isn't much to wait on the remaining EMD for seller to know it's in escrow.

If the tenant has only been there 2 months and its clogged so dirty that it froze the AC, then something isn't right...... the house/tenant would have to be filthy to do that.You had a Home Warranty company do the work ..... be careful with their diagnosis....those technician are often morons and will do just about anything to not really figure out the issue or really fix it....they do the minimum to appear like they fixed it and move on.....only to have the issue remain and you call them again in 31 days....1 day after the last "fix" warranty is up and you get to pay again.

If you don't expect it to appraise for enough, you'll have a plan to pay off any remaining amount from your personal loan.

Another benefit would be that in addition to the 2 units you sold in 2017 you’ll be able to catchup on the remaining units as well.

If you do, propose a new 12 month lease or remain MTM with an additional premium added to the rent.