I defer to the age old saying "if it's too good to be true, it probably is" 

Your deferred taxable gain is allocated proportionally.

Often people are selling with a good amount of deferred maintenance. 

When I read $60K for a 5-plex I can't help but think: deferred maintenance, vacancy, non-paying tenants, unpaid taxes, etc.

If crime isn't the main problem, but buildings falling down due to deferred maintenance or whatever else, then you are unlikely to get the board engaged.Third, come prepared with a scope of work that the board can then shop out for quotes.  

You will also be able to see if the owner has been deferring maintenance after your inspector has completed an inspection of the property.On that note, before you have the property inspected, be sure that you already have your property manager in place.  

If a tenant destroys your carpet and paint (and if they aren't otherwise damaging other parts of the property), then you might as well leave them in the property as long as possible, collect as much rent as possible to offset your rehab costs, and defer the turnover as long as you can. 

In order to defer all tax you must both purchase at least as much as your net sale (contract price less normal costs of closing) and you must use all of the net proceeds (the net sale minus any mortgage payoff) in the next purchase or purchases.Beyond this you can allocate the cash proceeds any way you want.  

Sales structured under Section 1031 do not trigger the taxes, but defers them.  

I bought and sold a property in Texas within 9 months creating earning a substantial profit along the way, what is the best way to defer or reduce paying capital gains taxes?