The seller wants to avoid the upcoming auction next month.

And if you are a newer  investor, syndications allow you to hire a manager that has infinitely more experience and knowledge than you can ever hope to gain (and thus avoid newbie mistakes).The biggest disadvantage with syndications is that you have to be able to feel comfortable with vetting and choosing a manager that will have full control.

Or do I have to immediately sell it to avoid the capital gains tax? 

but I like the business aspects of being the bank as opposed to the business of dealing with tenants and their ups and downs. 

First of all, do not quit claim but use a warranty deed instead to avoid loosing your title insurance.Second, deed your property into a land trust where you are the initial beneficiary.

Use a warranty (or special warranty deed) instead to avoid risking loosing your title insurance.Also with your lender you may trigger the due on sale clause.

It's the only way to avoid a lead based paint lawsuit.

It is one reason I've avoided 'blind' property investing in an area without a longer term commitment to build such a team.  

When you're evaluating different turn key companies, in general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)Don't allow for your own independent property inspectionAre not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)Require you to pay for any renovation upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all propertiesWe've been active in Indianapolis since 2010 and would be happy to help.

To avoid getting overwhelmed, I recommend you break things down: What do you see as your Single Next Big Action Step toward success?