Because there is so many novices who jump into STR without the skill, knowledge, ability to actually operate it and rapidly are bleeding-out.

Here is the how I would explain it to a kindergartner:The true power of a 1031 exchange is the ability for an investor to meet their investment objectives without losing equity to taxation.With more money they can buy larger, multiple, or more productive properties.What is the alternative?

I wanted to gather some wisdom from local investors on what neighborhoods/zip codes likely have the highest growth/appreciation potential for the coming years.

@Keith RichardsonIt depends on your risk tolerance and ability to stay organized.

As long as the location was in the path of progress, and the units themselves had already or the ability to add features like off street parking, in unit laundry, etc. 

I have $55K in the stock market at the moment and plan to save (and grow) the remaining in the stock market until I have enough to pay off the entire mortgage. 

Your dilemma boils down to two priorities: maximizing your investment growth versus creating financial stability for your personal residence.

My assumption is that it still will be better to purchase in my name (better loan terms, ability to put 20% or less down, and I'm already pre-approved) and move to an LLC, but this seems like a steep cost of doing business.

Sacramento seems to have a lot of inventory and buildable land which will increase supply keeping rent growth slow. 

Many contractors get burned by property owners and getting paid through the lien process is no fun at all.Another thing to think about with GC’s asking for a large deposit is their ability to be in it for the long haul and to potentially handle multiple projects simultaneously.