The refinance will hurt my existing cashflow at this group of properties but it’ll actually shorten my payoff period from 23 years to 20 years due to the change in loan product. 

He stated you have to pay for the Deal Automator after the 3 month free period ends. 

At least in NJ and I think its similar around the country, there is a 2yr Redemption Period whereupon the owner can "redeem" the tax certificate by paying the holder, i.e. the person who bought the 'tax sale' (I forgot the technical name), the required principal and interest. 

But what can I expect in closing costs (no points) and reserves to cover the period before its leased up?

@Joe PartingtonWell, assuming those numbers are solid and there aren't other issues with it or with the market -- AND if you can acquire it for 5% down -- your cash-on-cash is ridiculously good for (33%) and your payback period (2.4 years) is ridiculously fast. 

I was set on transforming this common room into a small efficiency apartment or fifth unit. 

The thing is initial cash flow has little correlation with actual cash flow over the hold period.  

My question is whether it's still possible to open the 1031 exchange account with a QI after the due diligence period of the relinquished property (but well before the closing date).

@Isaiah J AragonMy belief and opinion is that if you buy cash flowing rental property in solid neighborhoods, that the inflationary period were about to hit will only increase rents and home values over the long term.

Capital improvements include expenses for improvement to the property, such as a new roof, new siding or major renovations.Capital improvements for residential property are deductible over a 27.5-year period; Ordinary repairs required to maintain the property in good condition, such as painting, fixing leaks and replacing broken windows, are deductible in the year they are paid.