The process is extremely complicated and what I would tell you is to team with a local apartment developer.

It is possible to structure the seller carry back transaction inside of a 1031 Exchange, which would allow you to defer all of your taxes, but it would complicate your 1031 Exchange because you would have to convert the note to cash in order to complete your 1031 Exchange. 

Most property managers will do it as part of their service, in my experience, so it's really not that complicated.

There is even a nice niche for your day job if you network and find BP folks, especially those in the smaller multifamily market (deals too complicated, and out of wheel house of the average home loan person, and maybe too small to attract the folks that do the massive 8-9 figure deals..)

You'll complicated your life and strain the relationship with the contractor.  

Agent only show you listed properties, you need to find unlisted or expired listings, I am a broker in Baltimore, I find agents to be for the most part non responsive to investor's needs.Most want the quick in and out deal, nothing too complicated, show me the commission thought is their primary motivation, most do not counsel, don't understand creative financing, delayed settlement, Control and Roll, or the many clauses to benefit investors, a skinny contract offer or what to exclude in their 35 page standard purchase contract.SORRY AGENTS, I have been in your culture for over 40 years, I live and understand it.I know this is a silly statement, but I'll make it anyhow; "If agents knew what we investor know about real estate and the money we make, thy wouldn't be agents representing others, they'd be their own best client."

Sorry if I made that more complicated then it needed to be.

However the comments in that section seem to make the case complicated - in the case you want to sell you need a contract, but otherwise it's not necessary.  

For something this complicated, I would find another CPA and ask him or her.

However as one investor who refused my services due to price is now finding out (I know this only because I saw him post a couple days ago asking for "free" help) the tax code applicable to real estate is quite complicated and there is a lot of behind the scenes work that our clients often don't see.That said, I generally want an itemized listing (in excel, not paper receipts) of expenses in their various categories.