Armando,The best way to avoid issues is to buy a Multifamily (2-4 Unit) as your primmary with 3.5% down. 

However, keeping the property and borrowing against the equity (via a cash-out refi or HELOC) allows you to maintain your tenant and rental income while leveraging the equity to expand.Key considerations:1031 Exchange: Great for avoiding capital gains taxes, but make sure the new property offers better returns or diversification to justify selling.Borrowing Against Equity: Keep the steady Denver appreciation and tenant while using the funds to acquire another property.

The focus should be on eliminating vacancy and avoiding chasing unreasonable rental rates, especially in the slower winter months.Here’s a chart showing the median sales price of a single-family home in the City of Austin this year through November:The median sales price for a single-family home in November 2024 was up roughly 8% from the beginning of the year.

My assumption is they avoid the headaches or have too many in their flip queue and would rather assign.

Honestly, it is a lot of work, and there are some big pitfalls you want to avoid, but its not rocket science. 

I have it written in my leases that tenants are responsible for clogs as well as damage from clogs. I have lengthy conversations when tenants move in about letting us know immediately if there is a clog, to stop using...

I think issues regarding this can be avoided mostly just by tenant screening.

Otherwise you’d have to look into 1031 to avoid those.

Avoid areas with high vacancy rates or declining property values, often concentrated in certain inner-city neighborhoods.Since you’re out of state, building a local team is crucial.

Structuring your lease in this way would benefit you by 1) locking in a longer term contract to avoid turnover costs and vacancy loss; 2) it moves your lease end date out of the winter season and into spring/summer of 2026 so it can be more easily marketed and re-rented to match the seasonal demand cycle; and 3) it avoids any upset/angry tenants who may have been incorrectly assuming their rent was going to stay in the $1,200 range after their first 6-month lease term.Would love to hear any updates you have on how this one shakes out for you though!