Point is, (a) it's all but impossible for the investment to go to $0 and (b) you have direct, impactful CONTROL of outcome. 2nd: Back to the CONTROL aspect.

I can see a few possible outcomes. 

If there is more demand than supply, this will be the outcome in desirable areas. 

I am more likely to take a risk, but i suspect when my husband is out from under a controlling baby mama, he won’t mind a little risk either.I love Texas, try to vacation there often and my husband is aligned with Texas farm property as a ten year long term goal.I’m also passionate about the trades and if i could do it all again I’d be part owner of some kind of builder or remodeler or specialty trades business. 

We scraped the old house and we build new home, where the houses are selling close to the $1.8M What was the outcome?

Second, if you want a nice house in a nice part of town, you will have to pay for it, so will likely need to raise your purchase price.Third, if you want to go off-market, just know you are trading a lot of time for the possibility of maybe finding a deal.  

Both offer unique advantages, but understanding the trade-offs is crucial for making the right decision.

No tax so far I think.2) If I convert that partnership interest into shares in a PUBLICLY traded UPREIT I trigger tax on the deemed sale/exchange of the partnership interest into stock of the REIT?

It might take a large financial institution with capital for “brainpower” and marketing, and financial and reputation strength to design as well as create a trading market for this type of security. 

A 1031 exchange allows you to defer taxes by exchanging real property held for productive use in a trade or business or for investment for other real property of like kind, which is also to be held for similar purposes.