They can then proceed with a 1031 exchange for their rental properties.I understand their concern about the 180-day timeline.

This means you'll get a good cash flow, but appreciation of the property will be low.In the phoenix area there is more ownership and less renting, but due to prices increasing faster than inflation we are seeing a rise in renters.

Two concerns:1) How much of the repair investment would you get back?

But to date, I've just set my rents at a rate that accounts for me having to pay the water bill - and informed the residents that each year I'll increase the rent based upon my expenses (including water), so keeping the bill down helps me to help them.But one problem this could cause is if increasing the rent to cover the water bill then places your rent above the market rate.

I know many people have done it this way,  but two major parts I am concerned about are 1) how do you handle all the paperwork such as W2's, 1099's business records, etc. without meeting in person?

Phoenix is a hot market for housing investors due to its increasing population, healthy job market and steady demand for housing.Why Phoenix?

Material cost is likely to increase.  

One of my concerns is that lenders won't lend to potential buyers because it is a modular home.

@Hector Surratt Sosa This is a market that we are seeing increasing interest in here in 2025 as well.

180 SlipsFuel DocksYacht ClubShowersBy improving facilities I’d imagine slip rentals can be increased.