You can also diversify much easier and cheaper over geography so you are less exposed to the risk of a single metro area experiencing the loss of a major employer or other unique problem and messing up your returns.

Jason Bruning Figure out geography, property type, budget, etc. before reaching out to an agent.

My advice would be to settle on a business model/real estate investment strategy 1st and then to focus on geography 2nd.  

You'll pay tax on the difference but shelter the rest in your 1031.Selling one larger asset and buying several smaller ones in different geographies whether true turnkey or not is another option.  

@Edwin Nieves I focus on a specific geographic area and get to know the brokers and owners that are working in that geography. 

One thing to think about is that if you're contemplating doing a 1031 and buying a $500K investment and then converting that into your primary you will probably make even less than you are now on the investment house in the interim because you'll be trying to get investment cash flow out of a property that isn't best suited for investment use.It can certainly work but I sense a lot of other concerns than just the desire for a $500K primary residence.A lot depends on your geography but one option would be to do the 1031 and supplement with cash from the sale of your primary and purchase $500K of investment property free and clear. 

We at biggerpockets are a pretty diverse group as far as background, education, geography, market focus and age, but also potically and socially.

I wouldn't offer retail of course, but my question is: would any one purchases these at 50 cent or less on the dollar (current retail), since we're talking about prime geography.

It has the unique geography of not being in the path of any hurricanes, enjoying great weather most of the year.I haven't visited to check it out first hand, but I plan to.

But, geographies vary greatly, so maybe you can consistently achieve that with a broader focus.If you aren't going to be close by to manage the property manager, I'd suggest nicer neighborhoods or looking for pockets of nice in the lower areas.