I also as I go through the house I find deferred maintenance, you have to be careful not to nit pick the house and offend them.  

This is a passive investment, so no hands-on management, but some have higher LTV programs that can help defer your taxes.

Any full time employee of the company (i.e. both you and your wife) can rollover existing tax deferred retirement savings into the plan, so long as that savings is available for transfer (current employer plans typically cannot be transferred until you separate from the company).  

It's a decent property and currently produces about $300-500/mo in cash flows, not including deferred maintenance allowance.  

I hope we do not have to have a huge CapEx, cost of money, deferred maintenance discussion. 

The homes I targeted while I was driving around were ones which looked like they had deferred repairs, overgrown lawns etc...

When maintenance is deferred things like electrical pedestals, water lines, gas lines etc start going bad and need repair/replacement.

For this you get to redeploy your capital in a tax deferred manner but into a different asset you prefer.After this you can refinance at any time and use the funds to pay off the SFR.

You can defer the payment of your taxable gain by reinvesting in other rental, investment or business use property that is equal or greater in value, which by the sound of it you are already planning to do. 

Same goes for properties with lots of deferred maintenance ... don't take those on if you can help it until/unless the owner agrees to address deferred issues first.