@Jon Foley, Your partner has to take title to at least as much real estate as they sold in order to defer all tax. 

Expect substantial capital expenses and repairs until you get caught up on all the deferred maintenance.That took forever, next time my response is going to be.

But for everyone else this might benefit - If you want to defer all tax you need to do two things - First you must purchase at least as much as your net sale (the 319Kish). 

I agree with the 2-3 year turnover is good principal....for all the above reasons, and i find the more often the turnover, the easier and faster each progressive turn is because I am not playing catch up on multiple years of deferred maintenance.

If you are a long term hold and do 1031's having him as a partner means he can't use the stepped up basis when you die thus he would carry the burden of deferred taxes vs you removing it with death.

Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!)

How likely is the 16 cap to perform without side effects -- what was the vacancy, is there any deferred maintenance or is it fully stabilized and sustainably year after year a 16 cap?

On the topic of taxes - an installment sale (IRS term for seller-financing) can defer and possibly reduce capital gains taxes when selling a property.

You’ll pay that, plus whatever was deferred from the 1031, attributable to that property.

You may be precluded from deferring gain on sale under §1031 if the structure is an LLC.