The poor either don't make enough money to cover all expenses, or have horrible money management skills.

Your income will determine how much you can borrow and how much you can save.Unless you are doing something like flips (high risk, and potentially high reward-note potentially as it can go horribly wrong), you aren't going to accumulate a lot of wealth quickly with real estate. 

This is a horrible situation. 2 months of rent have not been paid.

But I'm horrible at predicting anything accurately.And here's the dilema - Not doing the 1031 creates the exact market conditions you want to avoid

Desirable neighborhood, horrible house with lots of value-add potential.

There is a horrible looking tree with no greenery sitting right in front of the home, I am definitely going to get that cut down.

The traffic is horrible!

Horrible idea in my opinion  It's deceiving.   

@Dante Pirouz if that is the case, that is a horrible. 

So should something horribly bad happen and your tenant sues you, they can only sue the LLC.