Arguably, a PM company is going to have these trades available at a cheaper rate (theoretically) due to scale, but the PM company is also probably going to mark it up, so it ends up costing about the same.

You can also always put more down to cover risks and refinance into lower rates.

or pay points for lower rate but wait for longer to refi?

Don’t be afraid to ask for lower rate, especially if you find the house or FSBO, in writing in the agreement, and that additional fee they’re charging would just make me angry.

One thing to also consider is if the kids take it over will they jack up the rent to market rate?

The other 100K of gain's tax rate depends on where his other income is at.

The IRS still doesn't like "short term" 1031s, with good reason - you need to ensure that you can 100% support that it was not a flip.This was not uncommon during 2020-2022 when prices were increasing at an incredible rate, I did have a few clients where they acquired a property that was truly intended to be a rental property, had a long history of buy / renovate / hold rentals, and then the market just blew up so fast that it changed the investment analysis for that property, or in several cases they actually just received unsolicited offers that they couldn't refuse.  

They mentioned it in the latest Vrbo webinar so I asked my Vrbo account manager and this is what she said:I put in a case to see if we can get Rate Automation placed in your MarketMaker.

Due to less competiton and less transparency, are commission rates higher, lower or the same in commercial? 

I could theoretically get my money and rehab costs back in ~ 1 year assuming it rents for $1500 per month (current market rate).