Once you complete a purchase of at least $118K you will have deferred tax and depreciation recapture on the $58K gain.It's actually a beautiful scenario - kudos!

If so you may want to increase your allocation to tax deferred investments, which will result in you paying taxes when your tax bracket is lower in the future.

I suggest you connect with @Dave Foster   He can set you on the right track to keep you legal and tax deferred. 

I am guessing that since it’s an LLc with two partners, we would process the data from the closing statement and defer the expenses for 2019 since we did not earn any rental income in 2018.Thanks,Lou

This rate would only come about if the prop you purchase doesn't have new or newer capex items (old leaky roof, old carpet, boiler than needs repairs etc; look for a different deal), if the PM defers maintenance (fire them), or if the PM (is incentivized by fees to handle a lot of maintenance call outs (fire them again).Your PM should charge you two fees: a % of your gross rents (8-10%), and a leasing fee (usually one month's rent or a smaller amount for resigning the same tenant, which also takes work because tenants, like everyone else, are looking for the best deal).Late fees should be split between you and the PM - half for you for waiting, half for them to pay for the time it took them to chase up that payment.

You'd need to speak with a Qualified Intermediary to execute a 1031, and they will make sure everything is as it should be.If you were to execute a1031,  you would defer taxes on the gain and roll everything (total value AND total equity) into new a prop(s).

Sale 75000 Property -50000   A/D 1000   Gain 26000   Gross Profit 35%   Down payment 5,000   Gain on 5k 1,733       Journal Entry   Cash 5000   Loan Receivable 70000   A/D 1000   Gain   1,733 Deferred Gain   24,267 Property   50000

For sure, do not be a complete absentee landlord because repairs and deferred maintenance are not always reported by the tenant.

I would let a large lease broker find my tenants and lease it up for me and put some money into renovations and deferred maintenance.

Mine are grown, but if I had it to do over again, I'd definitely have deferred having them for 5-10 years and dedicated myself to getting passive income streams in place.