@Ricky Sanchez One of the requirements of doing a 1031 exchange is that the tax-payer for the relinquished property has to be the same for your replacement property.

Quote from @Tomasz Kaminski: @Chris SeveneyHow do you consider property value if you cannot go inside to evaluate the interior condition?

•If insurance costs are reasonable and the property is in a high-demand area, this could be a hidden opportunity because many investors automatically pass on flood-zone properties without digging deeper.

I'm an investor/agent/property manager in that area and would be very interested in hearing more about the property. 

@Zach Howard some copy & paste advice below:)-------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

How many properties are being reported? 

Do you also have properties in the Smokies?

Transfer Fees or Property Tax Reassessment Some states impose a transfer tax or reset the property tax basis when property ownership is moved into an LLC.

I'll work with an attorney to assist with drafting that.Q2: Yes, I'll talk to my CPA but we'll most likely hold the property for at least 1 year under the LLC given our timeline to design, permit, build and sell the property, meaning I should avoid short-term capital gains.  

I understand Philadelphia requires a local property manager.