We are deferring to our client's preference.

With that being said, if you are just starting out, and especially in the current market, I would shoot for lower to have that downside protection and to be able to present a really good deal to the end buyer. 

So deferring the tax on that side shouldn't be an issue as long as you and your accountant feel good about your intent (and i know we talked about this being a long term property for you several times).523 is not for investment property. 

Your pitch deck is your sophisticated and professional presentation highlighting the most important aspects of your investment strategy.

Not to mention the insane taxes we will pay, roughly 37.5% on the net profit.Also thinking about a 1031 exchange to defer the taxes.

If you take advantage of a deferred exchange you must keep the records for the entire transaction chain. 

I would personally break down the operating data of each building to get individual cap rates, and get a better picture of what’s going on with each building by figuring out what every dollar is needed for and how those numbers may be adjusted by deferred maintenance. 

Wave any late fees and ask if they can at least make a partial payment (say 50%) and the rest can be deferred for up to 3 months interest free.

@Shafi Noss I may not be creative enough, but the issues I see are that large scale MF has a lot more factors to it that needs assessed, and it is never presented in a consistent way.  

If I do 1031 exchange in the future, will the tax be deferred too?