Well done on your journey to date - certainly so many people here on BP share your goal of passive income (or at least multiple streams of income) to minimize the risk of leaving their day job.

Also, it leaves the door open for you moving "up" to an owner occupied 2-unit down the road.

My experience with a PM company was terrible and I would never do it again unless my only concern was cash flow.

Also look at what assets your construction company owns. if you have very few assets and you have sufficient insurance then there is little to be concerned about in case of a suit against your company.

I'm planning to do a 1031 because like the idea of deferring taxes, but given that I have limited REI experience I'm concerned about forcing a bad deal to avoid taxes.

My only concern is adding the bathroom.

It is not a figure I need to be concerned with for purchasing 2-4 unit MF properties?  

My main concern was the age of the property but it is brick and seems to be in good shape.

@Mike McCarthyThat is exactly my main concern right now.

A few years ago I helped my (retired) parents buy their most recent house by directly giving them a $100k cash down payment, and they would like to leave the house to me when they pass in thanks for the assistance (it ended up helping keep their mortgage extremely low since they are on a fixed income).They are very worried that it will somehow get caught up in probate or red tape when they pass even if my name is spelled out in the will, and wanted to see about just adding me to the title or something so that there is a seamless transition without any hassle.