I'm in the Los Angeles County area so saturation is a real concern.

Is this a realistic concern?

@Sam Liu This is a common concern for people who are looking to do 1031's.

It's a very common concern that the other side of your transactions might try to take advantage of if they know you are doing a 1031 exchange. 

.● Project the exit capitalization rate (exit cap).When facing objections while raising capital, it's important to dig deeper to understand the true underlying concerns.

But, this market is getting wrecked, and will continue to get wrecked, as far as the owners of rental property investments are concerned.

The issue is I've lived in cities my whole life and feed off social life, something I'm already concerned with having when I'm working remotely.I'm currently eyeing cities like Chicago and NYC, the latter of which I have not lived in and have been doing some digging on.

I've considered selling to investors, but I'm concerned they might want a substantial price cut, which is why I'm trying to sell it to residential buyers first.

And, government bureaucrats go along with it either out of sheer stupidity and ignorance or, far more concerning, out of ulterior motives. 

Just a heads up.So you calculated out you need  $6 million worth of apartments to hit your goal.A commercial loan may require 20% to 30% down in cash, cash reserves, working capital, and closing costs.You will also need earnest money cash.The lender may also require certain repairs to be done Shortly after the loan is made.The lender may also require the Property to be stabilized as far as occupancy percentage is concerned, leaving little on the bone as far as sweat equity.Good Luck!