Depletion is much like depreciation but it is not the same.Everything you listed are improvements to land, including the wire running under the paved parking lot to the light poles.Land is the dirt, it is never under any circumstance depreciated.What is mentioned above is the lease being subject of depreciation, not the dirt.There is only depreciation or depletion under tax code, it is the nature of the tax beast, it is an economical concept as to devaluing an asset arising from it's use which may or may not be a financial limitation or reduction, but done to illustrate the lesser of utility of improvements.:)

I am a little concerned that the electricity may not be up to code and he may have put up a wall or two that are not up to code.

You typically have two years to find property that must have a similar use: Our friend @Bill Exeter has a great page detailing this type of exchange: http://www.exeter1031.com/1033_exchange_faqs.aspx#howSection 1033 US Tax Code(B)Period within which property must be replaced The period referred to in subparagraph (A) shall be the period beginning with the date of the disposition of the converted property, or the earliest date of the threat or imminence of requisition or condemnation of the converted property, whichever is the earlier, and ending—(i) 2 years after the close of the first taxable year in which any part of the gain upon the conversion is realized, or(ii) subject to such terms and conditions as may be specified by the Secretary, at the close of such later date as the Secretary may designate on application by the taxpayer.

This is a casual, no agenda affair held at a local restaurant/bar.

To really get into a bunch of the how to stuff go to the search bar in the upper right corner and search 'how to'.

Would you have recommendations/advise of what zip codes/up-and-coming neighborhoods to look for in these cities?

You also may want to check out a few other potential costs (code compliance, insurance, property/income tax consequences), as well as doing some reading/research on landlord-tenant law, just so you know exactly what you're getting into.

They just decided to adopt a single code so no one has to remember it's always that code?

I am planning to get an absentee owner list for 2 or 3 zip codes in my area (Dallas), with >50% equity via Listsource, and start a 6 month campaign, mailing once per month, alternating yellow letter and postcard.

Around here if the electric meter has been removed, you have to get reinspected to get it turned on... that inspection requires it to be to current code, not the code of 1955 (when my house was built).