Rollover from your old employer 401k into self-directed Solo 401k is not a taxable event and wont' affect your taxes.

Sales price: $900,000Seller finance: $400,000 / 2 year ballon / 7% interest rate / interest only monthly payment: $2,333 / no pre-payment feeEstimated monthly income: $9,300 / Annual: $111,600Electric separated - water $450 per monthProperty taxes: $16,700 (with property value assessed)Property Insurance: $6,300Renovation Repairs $150,000I anticipate the Re-fi appraisal to come in at a conservative $1,150,000. 

What about Transfer Tax? 

When she passes the asset that was purchased as part of the 1031 would then be liquidated and distributed to heirs with no taxes The goal is to get her the cash she needs from her asset without paying any/minimal capital gains.  

It is important to remember that if you buy a single family home that you will live in for a while, consider living in it for 2 years before you sell because the IRS will allow you to exclude up to $250,000 of capital gain on your property from being taxed ($500,000 for married couples).

What about tax issues for Canadians?

However, I am unsure as to what the best type of entity would be to set that up (from a personal liability and tax liability stand point).I've been investing in real estate locally in the U.S. for over 10 years, but this is something new for me. 

The only thing is my property taxes go up with no limit with the increase in property values, 17% the last assessment.

Additionally, with it being tax return time, folks have money to execute.  

Forming a single member LLC offers tax and management advantages however, amending your existing partnership LLC with the state might be quicker and more cost-effective than transferring ownership through a quitclaim deed.