What's the best way to turn 100K into the highest cash flow?

[Matthew Hsieh]

I'm looking to sell a condo I own in Southern California.  I bought it for 285K and I should be able to sell is for at least $330K.  There is a principle of 217K on the loan.  After all is said and done, I should be able to get about 100K from the sale.  

I want to do a 1031 exchange to avoid taxes.

I'd like to purchase/finance as many small SFH rentals ($50K range) in the midwest as possible. If I could put down payments of $10 - $15K on 6-8 homes, that would be ideal.

With a 1031 Exchange, I know there are time constraints of 45 days and 180 days.  I also understand that I may only be able to acquire 3 properties in the exchange.

Also, getting in a position where I could finance that many at once poses a challenge.  Would I have to get some kind of portfolio loan?

Any advice would be appreciated.

[Marcus Auerbach]

@Matthew Hsieh I second Scott about the 1031 issue. Works better with larger $ amounts. Speaking of which, be sure you understand what you buy when you target $50k homes. There is a reason they sell for $50k - they are cheap, but not a good value. Capex will more than eat up cash flow. Ask the people who are trying to sell their $50k house portfolio.