You'll defer all tax and get rid of the high interest loan and cap ex exposure. 

.- Cap gain rates increase is only for incomes over $1M- 1031 repeal is only for gains over $500kNo details on either of those thresholds are yet available, so we all have way more questions than answers.Preparing for something that may or may not happen and has no defined form is a gamble.

I did ask the agent if he could provide me with the cap rate for that area, but I never got a reply. 9 units are renting for $1350 each.

Treasury recently announced they are capping the non owner loans in the government coffers to 7%; both Fannie and Freddie have about 19%.

With the 5% down we only get a $730/month cashflow (again, this is simplified to not include cap ex, management, etc). 

Agree with @Eric M. the deals can LOOK like 20% COC but unless you are self managing and not properly accounting for all the cap/ex and tenant issues that do happen over time it's typically not real. 

The goal of the deal is to provide cash flow rather than a huge return on exit.For a starter boutique fund, I was thinking about capping at 5 million, doing a 7% pref with an 80/20 split.

Creating a hedge through financing for a rental property allows you to enjoy appreciation with a cap on the downside.

@Mark Askew - there are solid cap rates in place in Anchorage for commercial - if you're looking for that nature of an investment - doing a wholesale deal here from out of state without some local knowledge... probably not advisable.

Based on my mortgage of ~2800 - 3 units at 1200 would put me in an OK spot to be able to put money away for cap ex and maintenance monthly while covering my liabilities.