Make expeditor contacts so you know exactly what is involved with obtaining permits and how much it will cost.  

5) What I am trying to do is to gradually receive the funds, but I'm not sure how to accomplish that.6) I have heard a suggestion to do multiple 1031s and receive a certain amount of cash year, but that would be alot of work since I would have to buy 90% of my current assets, then the next year 80% of my current assets, etc.7) I don't really trust the TIC and/or DST (Delaware Statutory Trust) type properties, so I tend to think of this as the most likely resolution.8) Since some of these properties are triplexes, some would be classified as residential. 

And oh not to mention you've added a cash flowing asset to your portfolio.  

As such, I see it getting more and more difficult as you try and obtain more units as more and more issues will come up. 

Valuations on different types of assets can be tricky.

However, I would not think that the property tax exemption would extend into commercial assets since these are more investments and not your primary residence. 

If you're lucky an LLC will separate your personal assets and other investments from the investment property should someone sue you.

After obtaining some experience the RE investor is better prepared to invest in non local RE.

Your basis in the property is lesser of the below in the year it was converted to rental: 1) your adjusted basis - ( purchase price adjusted for other various stuff -- such as settlement cost, improvements to your house and so forth. 2) FMV ( which is not a tax assessment) if you have used the wrong basis, in 2016,  to keep things simpler and practical, I would catch up the depreciation to make it correct this year. your depreciation basis is determined on the year it was converted to rental, and generally, does not evaluate each year.If any improvements are made to a property, they will be depreciated as a separate asset. 

I am starting to think about the proper legal framework on my rentals to protect my personal assets/credit (such as an LLC, S-corp, etc.).