Not the best deal at those numbers.Can you negotiate the price down a bit, or maybe reduce the repair costs somehow?

It also helps eliminate/reduce the risk involved in 1031 Exchange transactions because you have already closed on your Replacement Property.

In other words, it is a good long term investment vehicle not one for reducing your taxes now unless annual contributions are made. 

The bulk of my background is in the construction business but I did have a real estate broker license for about 30 years but I never did that full time.Learn as much as you can before startingas well as doing things that are real estatee related.

If I have a fairly new portfolio in higher-end areas paid off, I'd probably reduce the proportional amount of reserves I keep.

If say the goal is to reinvest those proceeds into Buy & Hold, how would one structure where to hold the money to reduce taxes?

So, typical options are:1) Come to closing with the cash difference2) Do a different appraisal3) Walk away4) Seller reduces price to appraisal amount (sometimes the seller will but not always)

You should be able to take usual and customary deductions to reduce your tax exposure and still use much of the income you receive  for a loan.

However, keeping in mind the sellers "income potential" rationale, and the fact that the price hasn't been reduced since listing, my buyers agent has suggested to not go below a $120k offer. 

Something you may want to consider is hiring an attorney to reduce your property taxes.