We could build larger, but there will be less Buyers and the home can potentially sit for longer and holding costs get expensive.Not saying building larger is wrong, but just giving you our reasoning for our home size.But I do 100% agree with you. 

Investment Info:Single-family residence buy & hold investment.

A and B tenants, usually need more hand holding and expect more because they assume that they are entitled to it because they are paying so in rent. 

Holding is currently challenging. 

Once you have completed the consolidation portion of your 1031 exchange you now own a more expensive (and probably really nice) property that it must be your intent to hold for investment use. 

Investment Info:Single-family residence buy & hold investment.

So I would continue to hold the property - but I would be sure not to miss the ability to exempt the gain - so be sure to sell within 5 years.  

Which is why I think house hacking is best for 90% plus of new buy and hold investors.I wrote an article on this a while back that goes into more depth and you might find that helpful: https://www.biggerpockets.com/blog/get-a-loan

When we collect the holding deposit, if the tenant does not move in as they have agreed they forfeit their deposit and their application is revoked.  

Quote from @David B Graham: Investment Info:Small multi-family (2-4 units) buy & hold investment.