Our appreciation has been through the roof and is much easier to come by especially with some value add instead of just having passive appreciation.  

Roofs are one we can't always tell on the ground.

(Roof, box gutter repair, outdoor concrete stairs/walkway replacement, HVAC replacement). 

For example, a normal residential loan would expect  a roof, functioning utilities, etc. 

Less risky, because it's still a roof over your head and you can see what performs the best.Good luck with everything!

the challenges with flips  is that there are so many angles to try and cover / consider that it is somewhat like spokes on a wheel… even if you just take it system by system… roof, plumbing, AC, foundation, subfloors, electrical, appliances, septic, materials expenses, holding costs, taxes, etc.  

Additionally, if their capex budget was only forecast for 5 yr hold, and they are now anticipating 10 yrs, they may be seeing roofs, exterior repaints, other exterior repairs (stairways, railings, parking lots) that they assumed they wouldn't need to address, but now need to.Things to look for: positive DSCR TODAY, not on pro forma numbers.  

The major factors like the roof, furnace, plumbing, electrical upgrades, and foundation repairs are all examples of costly expenses you'll want to inspect before closing the deal.

Some common items to note: roof, electrical and plumbing, window updates.

In fact I'd guess you could probably structure a discount into your agreement just because of the logistics (no roofs, no foundations, no yards). 1031 isn't a terrible idea but you've got a few hurdles outside of costs - you're going to have to have some possible properties already identified as your window is small, you'll still have to manage the property unless you go through a PM, you'll lock up more/most of your principal since you're going 'bigger'.