Would I simply set up an LLC to own the building and then rent to the business?

The “cost basis” is a little complicated, but essentially you’ll owe taxes on....1) the depreciation recapture and cap gain you deferred on the sold property, plus2) depreciation recapture and cap on the replacement property you are now selling.Remember, a 1031 simply Defers reporting of the gain.

Two identical properties next door to each other may rent for different prices simply because one is managed or promoted better. 

@Jerry Puckett I think (that can be dangerous) that the OP is buying this wholesale, not wholesaling the deal.If this is something you want to manage on your home then I would simply play it by ear. 

They do not know who is right/wrong and they will simply tell you to work through the courts.Remember notice is simply that, notice. 

I'll check it out".I see a lot of investors seriously doing things wrong just because of a simple erroneous definition of a lead.Here is my definition of a lead.A lead is not someone that wants to sell their house.A lead is not someone that needs to sell their house.A lead is not someone that desperately begs you to please please please buy their house otherwise they are screwed.None of that.A lead simply is anyone willing to sell their house below market value regardless the reason.So every time you do marketing from a purchased list... wrong.

@Kaylan Haight closing costs are simply fees and expenses that the buyer usually pays when he/she purchases a home.

Absent any additional activity I would not offer above asking and simply submit what you feel is a good fair offer and wait on a counter or acceptance. 

Thanks @Jonathan Klemm You have to get the meter from the city but what I see people do that is easier is simply bill back based on proportionate share or simply add a flat fee of water to be collected each month with rent based on average uses the prior 12 months.   

In most cases an "expired" lease simply reverts to month to month.