Buy a sofa and keep the sofa bed to keep the extra-capacity, at the risk of cluttering the living room too much?

So if you make you buy box too tight, you will find very few deals that will fit your buy criteria. 

A 1031 exchange is for selling an investment property then buying another investment property. 

@Hiyun Park only experienced investors can DIY everything in Class C Midwest areas like Detroit, Cleveland, St Louis, etc.Hopefully the info below will help you:-----------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Investment Info:Townhouse buy & hold investment.

I have found I can lower this number if I rehabbed the property myself before I rent it vs buying a tenant occupied property.

TurnKey, Buy-and-holds, flips, or maybe long-term rentals?

I have been consuming as much education/reading regarding out of state investing as I can as well as literature regarding buying larger buildings (not quite the syndication level) although I have been reading that material as well to digest.

Otherwise, get a HELOC to access the equity to buy a home in AZ.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.