Your reinvestment targets for a 1031 exchange would have you purchasing $700K of replacement real estate using all $500K of equity. 

I require tenants to replace consumables like refrigerator filters or HVAC filters.

You said "100% of our funds were investors" then "my capital came from bank Lines of credit NO investors", so wondered exactly how much of the 100% was replaced. 

What gets expensive is replacing a deteriorated side sewer from the house to the street, when they use the cleanouts and find out what's going on down there. 

Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.

Handyman after guest vacates replaces toilet, breaks old toilet to find vape in toilet.  

If you are purchasing that MF property for $1 mil then you can use the 3 units as your replacment for the 1031 exchange ($750K of value) and live in the last unit ($250K of value).An awesome way to house hack your way up!!! 

Many unnecessary things are repainted, redone, replaced, and rebuilt.

I’ve never had difficulty filing a claim with Airbnb as long as I showed the broken item and the cost to replace or fix it. 

This is not a great return, but not terrible.As others noted, there are other risks, like having the property insured at full replacement or purchase price, or if the option is 100% seller financing with no money down or very little, versus 20% traditional down payment, this can start to move it into a better investment.