The IRS generally does not allow you to deduct expenses for a property that has not been placed into service, as deductions typically apply to operational properties actively being used to produce income.

No reason to spend $1000-$1200 on a typical 1031 QIMathew 

Typically, we see anywhere from $600 to over $1000 per unit (maintenance and turn costs)  depending on these factors. 

Perhaps do a case study with a hypothetical deal you think is typical for what you are looking at and compare it to the alternative investments you might use and their expected returns.

The way to get access is typically reaching out to the sponsor and getting the PPM and the documents you need to do a thorough review.

Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

You typically need to be in the $400-450k range to see those rents.

The SEC typically stays away from 506c losses because its accredited investors - they will focus on those that hurt the retail investor.

Add to that the fact that private financing typically involves way less bureaucracy, with reduced paperwork and fewer hoops to jump through.