We are currently using a realtor via our home relocation company that we are required to use in order to be eligible for the great benefits package.  

Is the $550 net after deducting taxes, vacancies, capital exp, prop mgt (assuming you will do this), HOA, etc?

This is not eligible for a 1031 exchange.A 1031 exchange is for property you purchased with the intent of "holding for productive use in business trade or for investment.  

The miles between work and properties are deductible.

You can usually add earthquake coverage later on as well with a 30 day waiting period, and with other rules and limitations (you'll definitely want to check the insurance quote for deductible and if brick/stone or brick/stone veneer are covered as well).

What about charging a repair deductible in your lease is illegal?

Further, when it comes to one's primary residence, the Seller(s) can deduct $250,000 if single and $500,000 if married.

By deducting this, you can see what you're getting for putting your money into it (as compared to mutual fund, C D, etc.) without deducting it, you only see what your return is for both putting your money in AND putting your time in. 8% vacancy.

I keep hearing/reading about people that are not paying taxes on their rental income because they can offset it with deductions.

Also keep in mind I think they update the eligibility matrix every year.https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf