To my surprise, the tenant was home and after a few uncomfortable moments on the porch, I assured her that my intentions were to simply understand her position in all of this.

Kinda a breath thread, but mostly I want to figure out how to convert my management intensive equity into something more easily managed like apartment complex's for high cash flow, and fixed index annuities for hands off security.

If your intent was to flip the property when you bought it, the profit is treated as ordinary income even if it took 10 years.  

So I ran the numbers as if we bought the house with the intentions of renting it out to show you the cash flow that we are currently receiving without refinancing.

The intent when you 1031 is to carry forward the basis on the old property so in most cases I see boot is treated as gain first not depreciation.  

If they can't collect 90%+ on current rents (should be a bargain for the area) you have to come up with thoughts on the rent pool for the area, it can support $850, if tenants with income to support $850 will want to live on that block, etc.And - to be intentionally glib - almost all deals will pencil out if some rehab will support a 71% increase in gross revenues.

Our intention is to live in the main house.

But yes, it is not done by your home inspector or plumber, that was my fault for poorly wording my intent.  

Intention is to have a parent holding LLC with subsidiary LLCs to hold assets, form joint ventures and possibly one as a holder of interests in foreign entities (we may do some investing in South America too).My wife/partner is a foreign national in the US and does not have any US based documentation (no Tax ID, no Green Card, no SSN, etc) at this stage but we do intend for her to get residency documents in the next couple years.The plan now is to incorporate the LLC(s) beginning in January with myself holding 50% and my foreign national wife holding 50%.  

I'm perplexed why you asked for advice, if you had no intention of accepting any?