I spent 5 years buying 5 primaries and 5 rentals.

We are able to get great incentives and the ability to own an investment property that take a very light maintenance budget for the first few years is a huge plus.  

Even work for them for years, yes years.

I finally set down and counted doors for the first time in years a few days ago, and I have over 40. 

Assuming when you say "$3900/mo in rental income" you mean cash flow.That means it will take you about 13 years of rental income to equal the $500k in equity you have now. 

If I cancel the PM contract do I need to pay a 1 year agreement fee to the old PM.

The home was in rough shape—think mold, a hole in the roof, and years of water damage.

I have one rental property in San Marcos, CA (North County San Diego), which was my primary residence for several years before I moved to Orange County.

I have dogs and have had 3 leather couches over the years.

However, purchasing the replacement property from an estate where your mother-in-law is the executor and other heirs are your wife's aunts and cousins raises potential related-party concerns under Section 1031(f).The IRS generally prohibits 1031 exchanges between related parties unless both the buyer and seller hold their respective properties for at least two years after the exchange.To stay compliant and avoid disqualification, ensure:The estate sells the property directly before any distributions to heirs.You hold the replacement property for at least two years.The transaction is conducted at fair market value with no prearranged agreements.Given the IRS scrutiny of related-party 1031 exchanges, consult a qualified CPA or 1031 exchange accommodator to structure the deal properly and avoid potential capital gains tax liabilities.This post does not create a CPA-Client relationship.