The three most common products that qualify for 1031 treatment and tax deferral but are absolutely passive in nature are the Tenants In Common (TIC), the NNN lease or ground lease, and the Delaware Statutory Trust. 

Hi BP community - I'm seeking input from landlords and property owners in Dover, Wilmington, and Newark DE. 

I want to form an LLC in Delaware to cover my out of state buy and hold properties in the Midwest (Kansas City, MO).

Possibly, there's a staging company or two in the Delaware valley region that'll purchase it from you. 

@Kendra Mattson look up cost segregated depreciation and de minimis safe harbor election and/or read my blog.

you can use "de minimis safe harbor"  to expense most of the appliance. 

I do most investing outside the city in delaware county, but i would think there is an inspection they do yearly as a run though to check for smoke detectors and things of the like. ( at least that what they do in Delco ) when they are due, you'll know for sure

They ultimately own the underlying property indirectly through the investment vehicleA, B, C, D, E form Partnership ABCDE.

CA is also the 6th largest economy in the world. http://www.politifact.com/california/statements/2016/jul/26/kevin-de-leon/does-california-really-have-sixth-largest-economy-/

TD, RBC and Banque de Montréal all have U.S.A. subsidiaries.