Sad to hear your purchase is what triggered the neighbor to sue for the PRE-EXISTING encroachment; as if it wasn't a problem 'til now'.

It's unfortunate we have to be concerned about the long term health of IL.Like the other posters said, if you can get out and not have to take a huge hit on tax implications and closing costs AND be a lot happier about your investments... then pull the trigger.  

Costs to get a relinquished property ready for sale are not on the permissible list, so roof repairs would trigger taxable boot. 

I’ve been researching and studying real estate investments for about two years and am finally ready to pull the trigger on my first deal.

Just wanted to run it by the community before I pulled the trigger.

It's generally advisable to structure purchases like these as asset purchases instead of a purchase of the LLC.With the latter, you absorb off balance sheet liabilities, contingencies, future lawsuits stemming from events that happened before your purchase, etc.You may want to talk to with your legal counsel before pulling the trigger.

Even Ford's famous slogan WIN (Whip Inflation Now) did nothing, a big surprise :-) And they have to be careful not to trigger a recession by screwing around too much with rates.The rate now is 8.3 with the high of the 70s being 11.3 (I think), so we are down 3.

Depending on the state, that should trigger you serving Notice-To-Cure and/or having a conversation with the tenant that he is breaking the lease he has signed and that could render an eviction.

My question is what triggers the IRS if you sell the second property?  

I'm not sure about your familiarity with securities laws, but be aware that raising money from third parties may trigger some obligations and filings if you are looking at swapping equity for money.