In my head i picture a some empty room with a printer on the floor and stacks of paper everywhere, having to drive to the post office and handing them a list where they hand type every address one by one. 

You only need to get around 4-5% when you include leverage to equal those returns you cited and then factor in tax advantages and you are exceeding those returns. 

Staying local would make capital the limiting factor where my restrictions out of state would be additional research.

This factors in both monthly rates and vacancy.- What are your expenses?

A 1031 exchange is a great way to indefinitely defer the tax and use it to grow your RE portfolio, and build long term wealth.The most important factor in a 1031 exchange is that your qualified intermediary must be in place prior to the closing of the sale of your old property.

If you have a scenario that the area is being developed or other factors that indicate value should go up significantly in the future, it might also make sense to hold and refi your capital out. 

I am striving to purchase rental/lease properties within a 1 hour drive.

For my thesis, I'm conducting research into the practices and motivations of small landlords in Ontario to explore how various social and economic factors influence their business strategies, day-to-day property maintenance, and tenant interactions.Could anyone refer me to someone who might be interested in participating?

Location plays a big factor into this question. 

But not the one I drive .