What you propose is different but in your original post this was not clear.with the additional info, I have seen similar comped with quads.  

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

Hi @Austin Green just found this post, curious if you ended up with the house?

I'll keep you guys posted.

Happy to post more details on the financials but for starters we owe 1060000 on a 2.25% VA loan. 

Fannie Mae will allow you to transfer the deed to an LLC if you decide to try to go the conventional route, but the loan would still be in your names and you'll need to pay a title company a second time post-closing to do this  for you. 3) I can't speak for the area so no comment there4) If you're self managing, make sure you find vendors you can trust in the area since you won't be able to easily verify if an HVAC guy, plumber, etc. is trying to rip you off and tell you to buy something you don't actually need. 5) Make sure you have clear alignment of goals and a clear operating agreement that spells out what to do if those goals start to not align in the future since you'll be jointly obligated to these properties. 

I also suggest you post your listing to "Short Term Rental Listing Advice" on Facebook and let them give you more feedback as well.  

Brandon Turner outlined this method in one of the older podcasts and there are previous posts in the forums.  

Hello -I saw your post and wanted to ask how it was going/do you have any recommendations? 

I've posted about my experience many times.