We accountants will be able to charge you for one additional tax return. :)PS.

@Jen PothilatDetermining whether or not a property is a "good deal" is extremely subjective, because the definition of a good deal is going to differ from one person to the next.First and foremost, I would ask yourself what you're hoping to accomplish with this property purchase.

Additional increases will be required if extensive repairs are required by the Health Department.

@Dustin Booth In addition to the ideas above, I wanted to throw it out there for you: if you cannot find another asset to 1031 into, consider a "fractional interest" as one of your 1031 choices.

Some additional detail / other thoughts:Low down payment as I'm looking to invest out-of-state for cash flow with the leftover capital.

@Ari BachrachCouple additional points to add to my colleagues' excellent answers.The 15% savings that  @Ashish Acharya mentioned are not guaranteed.

If someone comes around and pays their asking price, than they were successful in accomplishing exactly their goal...but so long as that's not you that over pays they can try to do whatever they want.

In addition, when a property is passed from you, to S-Corp to LLC, there is no paper trail associating you with any homes if, for any reason, the LLC is sued, it can not be traced back to you personally. 

Portfolio lenders typically follow the same (75%-80%) rule and consider the additional income from your properties and perhaps relax on the debt to income ratio and as long as the deal makes sense and generates positive cash flow.  

My preference is the latter and I want to rent it and add it to our portfolio.