I am not experienced with really any of this but using this community and others im extremely excited to get started. 

The use of a particular type of deed typically raises concerns for a buyer because of what a prior owner is guaranteeing or agreeing to assist with or not, but like Greg said, if you have a title insurer willing to insure yours it's because they've done their research. 

The main area of concern is how lines 20-26g on the 4797 don't seem to have any provision for the deferred gain that is the whole point of the exchange, so when filled out it seems to show the whole gain as taxable capital gains.  

I really don't understand what my broker is so concerned about. 

Overall I’m more concerned with cash flow and returns than a cap rate but I want to make sure Im creating an accurate and somewhat conservative scenario.

However, it is an extremely important cost to account for.5.  

But he may be right as well. you should have gotten multiple bids before you started the project. that would have addressed your concerns regarding overpaying.

Also in LA renting is extremely expensive.

It's extremely important that you understand your documents in the event of a default and the standard language in a boiler plate note and mortgage is structured primarily for consumers, not investors.

Secondly, he went on to mention it cost him $300 to heat 2 rooms for one month over this winter, his concern was the insulation.