So, assuming I understand correctly, my father and I will each owe capital gains taxes (~20%) of ~$20k.Instead, it seems like I might be eligible of using the 1031 exchange to roll over my 1/3 (~$165k) into the purchase of another property.   

If I recall correctly 9 and 12 years have essentially same plumbing Copper thickness.

I am just closing on my first deal, but have ran hundreds of numbers on properties.If your numbers are correct and I am assuming at least 6% interest rate for the entire cost of the investment you are looking at roughly $1,865 for PITI (which does not take account vacancy, maintenance, capex/repairs).

You are negative at the present time based on normal projected expenses with a long term SFH income property..Thomas your correct but your crushing these poor folks with reality !!!! 

They send a letter out and send often a realtor to inspect them unannounced.They have cited those broke the rule asking for corrective action and threaten to cancel the insurance.

Sell in a high market, knowing you have to re-purchase in the same sellers market, or wait for a correction then sell for less and re-purchase during the  upswing? 

I think the only answer is are you equipped to deal with the issues that need to be corrected, in order to make a profit on the building.

@Jason S.My auto correct must have kicked in.

Or more correctly, multiple investments or a multifamily. 

I pulled these numbers from a combination of rentometer, rentcafe, and craigslist.Any of you currently working in these areas, can you confirm your areas rent is about right or correct me if I'm way off please.