I'm wanting to get into renting properties and was thinking about selling the house but know capital gains can kill profits..hear 1031 exchange can help me to reinvest in better suited renter property.

Have you considered doing single family with a mother in law suite or accessory dwelling unit?

As Nathan mentioned above, the number one thing (at least for me) is protecting yourself from discrimination law suits, which is honestly pretty easy.

@Justin BerryLLC should own the entity and you want legal protection from suits against the property.

@Ebony Mullins Bigger Pockets has some decent calculators that should be able to suit your needs for now, if you sign up as a Pro member.

Found a 3 bed 2 bath with an in-law suite above the detached garage in the back that I live in and rent out the front.

File a Small Claims Suit against tenants for back rent. 

We have one near us that is basically a 1/2 way house BUT he gets $845/month/unit or $40/night, I'm sure there's a couple of by the hour suites as well, (a friend does his books).

So it then comes down to what type of entity best suits your needs. 

I purchased an older house that needed some cosmetic renos upstairs but it had a legal 2 bedroom basement suite downstairs.