This eliminates your risk exposure when finding vendors to complete rehabs within budget and handles the time consuming aspect of property management.

Update: It looks like they wrapped in the rental property features into the "Home and Business" package and eliminated the separate rental property version.

As long as you own that property the capital gain taxs you deferred in the 1031 will stay deferred.And there will actually be the opportunity to start to eliminate some of the deferred tax once you have lived in it for at least two years and have owned it for at least five years.

It will also eliminate the seasoning period because I’ll have money for my down payment and won’t have to rely on a cash out refi 6 months into the future.

With that we can eliminate our utility costs which increases our bottom line and adds value to the building.

I would think you could do it for that and eliminate the whole hassle of shipping it in here? 

If you choose to get a 2-4 unit your only competition is against other investors to get those deals and the regular home buyer is eliminated from your competition.

As I required my broker to have a property management division which eliminated like 75% of the broker houses for me.

The best place to start would be with your IRA custodian.A checkbook IRA would eliminate this issue, and is generally a more effective and efficient tool for IRA investments into rental property. 

At least by updating it if you should go to sell later you may get higher offers reducing or even eliminating your risk of a loss at sale.