I'm covering the leverage and have reserves in place for any capex expenses.

It didn't occur to me when I shopped for this policy, but will our rentals even be covered due to different ownership?   

Quote from @Chris Kittle: Quote from @Trevor Finn: Hi @Chris Kittle,Your list covers the essentials!

For a flip, you'll want to get a builder's risk policy, which covers the property during renovations, including any damage from fire, vandalism, or weather while it's vacant.

Insurance companies often pay for temporary housing for families displaced by things like fires or floods, and they usually cover full rent!

This is what I think I know:- The borrower can choose to pay off the note at any time (by selling the property or just paying off the loan with other funds), so it is important that the legal balance covers my investment and some profit- The borrower could file bankruptcy (can someone confirm that this will only cause delay, but not jeopardize ultimately collecting the legal balance of the note)- Most of these DOTs will have a rent assignment clause, so I could try to enforce that and collect rents from tenants (essentially manage the property) while I am holding the note and trying to foreclose.

I would then probably consider putting down the min. downpayment on a duplex up to a fourplex, for a place to live and rent out the remainder to  cover the mortgage and expenses.  

and how do i cover this up?

Hey Dave, since I have mortgages on these properties, would it make sense to bring cash to the exchange to cover the mortgage amount (or pay off the mortgage before doing the 1031) and improve the cash flow for the newly acquired property?

There's nothing left to cover expenses so you better have deep pockets to cover maintenance, admin, turns, etc.If you think you can quickly improve rents to a point that covers your expenses and pads your pocket a bit, then maybe, IF it hits your return threshold.If you're buying cash, then the mortgage is not a factor.