That said, if you have no experience and are doing a big rehab in another state, that's not as easy to approve. 

How long have you been investing in those states?  

. - No state income tax. 3.

That's the future according to articles.

I agree that you should consult an attorney for your state as each state is specific in what you can and cannot do. 

I'd stated the occupancy limit on the property is 4 adults and was a bit unprepared when he filled out the application with 6 total people (himself, wife, and 4 kids).

I only thought Hawaii had ground leases .. so much to learn as we go state to state..

Depending on your state, you might consider a Land Trust. 

To expand on what @Michael Plaks stated - yes you most likely can do a 1031, the next question is you should be asking if you should do a 1031.It isn't free to do a 1031 - you don't want to spend $2k in fees to have a temporary deferral of what would have been $4k of tax. 

Some might be depreciation recapture,  Your state makes a difference.