It seems like many folks get unnerved about the potential adverse tax effect of a real property sale because they only consider the transaction in isolation rather than taking into account their total situation (carryover capital/passive losses). 

How would we scale this or potentially 1031 exchange into a larger deal (commercial)?

Seller finance and reverse contingency are some potential options but both are tough to get in today's market, although not impossible.

Potential for increase in rents and appreciation upto 3.5 to 4million in 5-6 years but not sure.Rents at 210k per year for 4 tenants. 50k per year total paid for common area maintenance by all the tenants - which includes property management fees, property tax, insurance, snow removal, other maintenance and misc stuff. 

Is this a potential problem or is this easily corrected?

This sounds like potentially a very good plan

. - Even as part of my management company where we managed over 400 rental houses, unless it was a true emergency such as a broken water line, dangerous electrical hazard such as sparking lines, a gas line leak, etc we did not deal with emergencies in the middle of the night.

When you purchase, make sure rents in the area will be a potential cashflow for you in the future.

Point out good cities / neighborhoods in the area with good cash flow potential is appreciated. 

Hello, I'm currently going through the process of attempting to open 0% business credit cards to hopefully potentially use as the downpayment to qualify for a hard money loan, to then use that hard money loan to purchase and flip properties.