The tenants may just be placed there to show a higher occupancy and offered deals like deferred maintenance will be fixed once the new owner is in charge, no background checks are done on the tenants just to get it full etc... 

If you want to defer all tax you just purchase equal to or greater than your sale.  

We are taking care of deferred maintenance which should encourage this as well.

Yes, I had some deferred maintenance, had to evict 10 inherited tenants and had some sleepless nights, but it was worth it.

Looks good but it's hard to give a definite answer without knowing your market and more about the property (how old, any deferred maintenance, etc)

You'll get to spend or reinvest $200k tax-free/deferred money anyway you wish.

I would DEFINITELY be on the lookout for deferred maintenance and other issues with a self-managed properties with no rent increases.

BTW.Good points, taxes are deferred, interest the seller gets is usually higher than CDs, properties are more marketable as a buyer who doesn't otherwise qualify may buy, like an investor.Like all other seller financing threads, you can't get into them past 3 or 4 posts without getting bad information or implied transactions that have issues legally.

I have tried several different management companies and they just went from bad to worse, they would overcharge me until I got tired of losing money and fire them.I still have a few properties that I need to do 1031 exchanges with because they are fully depreciated, so I would like to find something to get into where I could defer the taxes, and after selling what I have I should end up with something between $1 and $2 million to invest depending on how the sales go and how much I have to pay in taxes.I am looking for suggestions on something that is more of a passive investment, but where I can still make a decent return, any ideas?

You never know when those will occur, and we have found it to be really common to come across deferred maintenance items when we have moved into our properties.