He is busy working at the hospital and doesn't want to deal with tenants, toilets, taxes, trash, and all that haha

so I used 1.5% as a property tax number, and I used $200 mo for insurance.

It’s crucial to conduct your own due diligence, especially when it comes to rent comparisons and property sale prices.

I was hasty due to the higher mortgage rates, and it turned out to be a huge mistake.

So, in your considerations, I would park right there for a bit and determine how this would look for you.Since you have about 2.5 years to think about it before you would need to spring into action to take advantage of the rollover for tax advantages, maybe you try on a rental and see how it fits. 

@Brice Alef-Torrisi putting each property in its own LLC is usually overkill.Getting a bank account for each LLC is typically something you need to do to avoid "piercing of the LLC corporate veil" (actually depends on tax selection you made for LLC), but is also overkill.You haven't indicated how you are holding the deed for the latest property.If in your name or same LLC, you don't need a separate bank account.If in separate LLC, you can create a Master LLC, have each property LLC hire the Master LLC to manage their affairs, and just get a bank account for Master LLC.This is an opinion, not advice, so lookup CPA Frank Alcini in Troy for expert advice.

They may justifying paying more by claiming they’re paying the premium for the “business”, but since the “business” and the real property are inseparable the property owner will still benefit from the increased value due to the arbitrager efforts.  

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

@Saul Vargas, to piggyback off others, sourcing a traditional SFH rental that meets your underwriting criteria will be complex due to interest rates and market conditions.

For several reasons (property taxes, politics), I would prefer to begin real estate investing somewhere other than locally.