From there we decided we had to force equity in order to be more efficient with our funds.

I have just bought and held for long periods.

But it is when the problems and issues come, and it always will, then you want someone who knows what they are doing to manage the property efficiently.

QOF can be a great way to defer your current tax burden and exclude gains from the new property purchase.The big con is this is a very illiquid asset with a long-hold period.

And quite frankly, until the period where you have to start worrying about what happens when the lease ends, it doesn’t make much difference unless your building a dynasty or worried about your heirs.  

So 2 things to make sure of when talking to lenders about your scenario.1) Do they have a seasoning period before you can refinance and if so what is it.

All of the tax liability, the capital gain and the depreciation unrecapture, are deferred...For the 1031, you really don't have long to identify (one time period) and then close on the "exchange property(ies)" (a second time period). 

You need to at least be under contract during your 45 day identification period. 

To my knowledge those funds will be available to draw from for a period of a few years so you can just keep using them and paying them off over and over. 

What I want is since we're basically doing her a favor and holding for a long period is as follows:Move in Date: June 25th (prorated month total $340) Security Deposit: $1700 Month of July paid in full upfront: $1700Total up front: $3,740 by June 1st along with signed lease agreement & addendum if we're going to hold for her.