And you've started at a great place here in these forums.From the 1031 perspective, however, there isn't any difference at all. 

@Connor McGinnisConsider evaluating the pro forma rents from two perspectives -determine the maximum amount you can increase the rents without making any renovations and then figure out how much more you can raise them with renovations.

Below is a comparison of average annual property insurance and property taxes for 5 states:Texas: average insurance: $2,536, property tax percentage of value: 1.68%New York: average insurance: $1,418, property tax percentage of value: 1.40%California: average insurance: $1,839, property tax percentage of value: 0.75%Nevada: average insurance: $1,144, property tax percentage of value: 0.59%Florida: average insurance: $2,207, property tax percentage of value: .91%To put these costs into perspective, below is a comparison of the annual cost for a $400,000 property.Texas: $2,536 + 1.68% x $400,000 ≈ $9,256New York: $1,418 + 1.40% x $400,000 ≈ $7,018California: $1,839 + .75% x $400,000 ≈ $4,839Nevada: $1,144 + .59% x $400,000 ≈ $3,504Florida: $2,207 + .91% x $400,000 ≈ $5,847Sources: Homeowners insurance, state average property taxesIndirect costs: Rent control is a hidden tax that may limit your ability to select the best tenant, remove a non-performing tenant, and increase rents enough to compensate for inflation.

Key due diligence focus areas for this type of assetAny experienced perspectives would be valuable as I move forward with this potential acquisition.

I guess from a landlords perspective, I’m not quite sure what I owe to the tenant.

I would say sell - every day of the week from a cash-flow perspective.  

There is enough room for both - this chain has been a great for perspective.

It's worth a listen just to have the perspective of the other ways to factor into the decision making process.Hope that helps.Mike

Any advice or perspectives you can share would be greatly appreciated.Thank you!

There are dozens of professional landlords here who read what you said and took the time out to share their perspectives with you.