I made a deal with her early on that as long as I can put $1,000 into savings each month, she could spent every penny we had and I would never say a word.

The info they share is worth every penny for their affordable program.  ...and ask them if they still lose money from time to time...yep!

Biggest change would be to finish the basement so the first floor 1br apartment can utilize it and extra space, otherwise, I was thinking to update kitchens / bathrooms / floors and put fresh coats of paint + add moldings.

The plumbing in this house is copper and galvanized mixed, but mostly galvanized.

Sometimes all that is needed is a new coat of paint.

So making sure the entity puts it into productive use and letting some time go down the road before doing a 1031 would be key.ouAs an aside and free advice, so of course worth every penny :)  - even though the new entity will file it's own tax return, make sure and do other little things like have a separate checking acct and books, and only take disbursements in a structured manner.  

Mostly the vandalism is annoying (e.g. stealing the copper ground wire off the side of the building... can't imagine that re-sold for much). 

I see it all the time from investors who are trying to pinch pennies.

So if someone comes and steals all the copper, you can't do anything about it.

Sewer lining will work but overtime, the same issue may popup in another location.I periodically treat the sewer line with copper sulfate, which will kill the roots.