It is not being understood correctly.

I never understood the appeal of having rental houses all over the city when you can have your tenants in one location.

Maybe you miss understood my original post.Michael Seeker This is a portfolio of SFRs.

@Jay Hinrichs I got you,  I totally understood, and you make an excellent point.  

I've seen that lingo around but never really understood what it meant exactly.

Will I completely understood your position as well as hers.

The one point that I wanted to make sure was understood is that the improvements, whether paid before, at or after closing must be paid under the control of the Qualified Intermediary and the corresponding improvements must be completed before you take title to the property in order to be counted as "real property" for like-kind property requirements and qualify for tax-deferred exchange treatment. 

I invested in that before I understood the risks and it was a second position preferred equity at 80% LTV. 

biggerpo,Understood - and, I agree.

I guess I just never really understood what they are good for other than running comps and opening the door pad lock.