It would take several hours of general explanation and then another couple of hours of custom analysis by an experienced accountant.I can only give you a few starting pointers, but each one really has a LOT more to it than a short sentence.1.

Personally I love that area and would love to have a place there.

Personally, I may do something before then with a similar capital gains objective but with a longer hold and only in a few very narrow geographies.  

Take advantage of the opportunity to learn from experienced investors who have navigated similar paths and those currently active in the local market.

I think personal capital is great.

Have you considered either studying property management or hiring an experienced property management company?

I personally have had great experiences in Cleveland and Columbus. 

Also, @Connor Gillen is a great person to chat with as well. 

The property I would buy is in her LLC but she would like the dream home she’s building to be in their personal names, can she use a 1031 exchange at the end of the 3 year balloon when I pay her off and use those proceeds towards a new construction build?

I use State Farm for my personal residence; it's bundled with my auto insurance.