would an alternative route be getting a limited FHA 203(k) Loan to purchase an auctioned home or does FHA 203(k) require an inspector first as well?

You can start as a passive investor, and look at alternative active strategies.

If I just sell with no 1031, I have the funds to invest right away in alternative asset classes but  have to set some aside for settling capital gains tax and depreciation recapture when filing taxes next year.

I strongly advise you to engage a fee-only financial advisor to discuss your specific investments and track record so they can help you understand what your actual numbers look like and bring to your attention safer alternative investments.

I would love your experiences because my alternative is to spend a ton of money on airdna data! 

Alternative Markets:If cash flow is your primary goal, consider looking at nearby markets with lower property prices and higher rent-to-price ratios.

However, it allows you to use the vacant rents of 75% market rent as an alternative income to help the borrower to qualify.Happy to connect and assist you in your real estate investing journey.

Not knocking the app, just not cost effective with several other options/ alternatives to to choose from. 

If you have the chance to read my long winded post and have insight on alternative ways start my REI journey please respond or feel free to DM me.

If the alternative is wait 5 years for a down payment on something you don’t live in, you stand to likely gain substantially by moving on this decision now and collecting rent, principal pay down, appreciation, and tax benefits in those 5 years.