You invest only the gains and you'll defer cap gains until 2026 and reduce them by 15%.

That said, it's exceptionally rewarding when you do it right.You're right that the economics of third-party management really only start around 80-100 rooms.The PIP expectation relies heavily on the age of the property and deferred maintenance.

Our main reason for wanting to do this for "future buyout opportunities" using 1031 structures to defer taxes.

Our main reason for wanting to do this for "future buyout opportunities" using 1031 structures to defer taxes.

What are some options that I have where I can delay or minimize/defer payment for a few months but still own the property if I put it under an LLC?

Cap Ex is often calculated closer to 10-20%, though this can be highly dependent on the state of the property and if maintenance has been deferred. 

We are unsure about the status of any deferred maintenance, but intend to fully fix up/replace any major issues ex: HVAC,roof,etc.

We are unsure about the status of any deferred maintenance, but intend to fully fix up/replace any major issues ex: HVAC,roof,etc.

Besides deferred repairs needed paying utilities can absolutely crush any chances of making profit.No legal advice given

But I am newer to the investment side of things and defer to guys like @Greg Dickerson for their experience with this kind of strategy.