In this situation, I see a lot of investors overpay for a less than ideal asset to beat the taxation deadline.

If your concern is just about the future demand and prices, I would recommend that you hold tight and ride the wave.

If the market sours or you can't get it rented, or things take longer to get done.. time is money as they say and you need to ensure you have plenty of cash when times are tough/tight. 

Ive had a couple showings where they wanted to fit a king size bed, but it would be a tight fit.

If I were to use 1031 exchange funds obviously the timeline is tight, so I may have to use temporary financing to close the deal and then refinance.

Corners of the bed, just any tight spot they can sneak in, you must exterminate every part to be safe. 

hey Matthew - very good point. my Wife and i have been living in our current home for about 7 years. we have a decent amount of equity. we are looking at a new home as an upgrade and i have been tinkering with the idea of renting our current home out instead of selling it so we can build even more equity.the rental estimate versus what we pay per month would be tight; we wouldn't profit much. this is a concern.secondly, renting the current home eliminates any profit for a down payment for the new home. however, i do realize the direction you are recommending; "park" the "100k" in the new home and keep the current home as a rental property?

Some feel that as long as it's kept arms length and documented tightly that they can do it. 

The margins look a little tight, and I'm glad you've learned a ton! 

And we're wary of those who want to overbuild and overpopulate; particularly when those coming in do little to contribute to our tight knit communities.