Best Bang for $900k in D.C. Area? Helping Parents w 1031 Exchange

[Kevin Leahy]

Diving right in with my first post.. My parents want to buy a property in D.C. for around $900k. This is a 1031 exchange -- they're selling a rental property in San Diego, where they live. I live in D.C. and would manage the property for a fee. 

My parents' goals: Hold 5-10 years or longer, then probably 1031 again. If given the choice of one or the other, they'd prefer appreciation over maximal cash flow.

My goals: Help them find a property. If rehab work needs to be done, contribute toward that in exchange for a small piece of equity. Maximize cash flow by turning part of the property into a short-term rental (I've done well Airbnb'ing a 1-BR condo in D.C.). 

Any ideas for a win-win strategy? Suggestions for types of property to look at? Neighborhoods/cities near the city that deserve a close look? 

Thanks -- and if anyone in the area ever wants to meet up to to discuss short-term rentals/real estate .. or get a tour of the NPR headquarters, just PM me!