Fortunately one of them wanted the house and qualified (barely).

He barely returns them now.

Though both properties generate positive cash flow (barely) with only 5% down, I paid market value both times and dont want to do that again.

The overall condition of the property is a 7/10 imhoThe market in my area seems to be flooded with 3 families for sale that barely "cash flow."

If anyone has any experience in this holding period mess I"d appreciate their input.You are correct there are no required holding period for doing a 1031 exchange, but the bare minimum you would want to do is one year and even that is pushing, it does not guarantee they will come after you if you do it sooner, but it does greaten your chances of them auditing the transaction.

Sounds like it might just barely work.

Ten percent of the rent is $275, so now your rent has to be $3025. just to break even, and at that rate, you will have to pay some out of pocket, because that just barely covers your expenses.That gives you a really broad idea.

If it barely cash flows with a 30 year note on it, then I would pass.In reference to a shorter note (maybe a 10 year), I think that depends on your investment goals.

At current prices, one could barely buy empty space for that over 1000 sf, much less renovate it.

I am going to rent out my first house and barely break even.