Just make sure your expectations are there! 

Is that typical for insurance placements in that market or is this the high end you would expect for this property? 

A 1031 also adds complexity and timing pressure.Watch Out For:Opportunity Cost: Renovations tie up cash that could go toward other investments or reserves.MTR/STR Management: These models require more time and effort than LTR, even without a property manager.Market Risks: WA properties may appreciate slower than expected, and higher costs could reduce your margins.If cash flow is your priority, option 1 (renovate and STR/MTR) likely offers the highest upside.

I don’t expect they were trying to sell you something you don’t need.

And how much can I expect to spend on this process?

@Lydia T.

If a seller doesn't know where they are going, you aren't buying their house.Also, you are probably expecting to get somewhere on the first call.

As a CPA and real estate investor who is a general partner in two syndications, I want to share some practical advice to set realistic expectations.

Rent out to roommates so I employ the "rent by the room" essentially.Pros:insane cash flowif your room offer is much better value than other places to live, tenants will stay awhilea small community can be built when your tenants become friends with eachothernever ending supply of tenants (at least in my area)Cons:CAN BE management intensiveWILL BE management intensive until you gain experience and know how to manageIf you employ this strategy, the BIGGEST risk/liability mitigator is being VERY clear from the start about your expectations and that you will evict if new tenant doesn't follow your rules.With my setup - I furnish the rooms and have all utilities covered. 

You have to look at deals for what they are and you have to be real with your expectations.