The only way to avoid that with a 1031 exchange is to have the note go into your exchange account and then during the exchange period you buy the note out of the exchange by swapping cash from any source with the note in your exchange account.When you do this you are able to defer all the tax in the 1031. 

As far as purchasing leads, I don't know a reliable source. 

They forget our brokerage, team, and lead sources put their hands into that check first as well.After August 17th, only the best will continue to prosper in my opinion because it's going to get harder and harder to start from scratch in the business.

At the end of the day the goal should be to make enough to give you an optimum lifestyle but not go overboard and cause yourself more work/hassle if you don't actually need the additional income that comes from it.Increasing the quality of the area/properties should make it easier management wise and if you don't necessarily need the cash flow now could end up ahead in overall return compared to the lower end areas, especially if you use leverage.I think it depends on your source of active income as well and how long you want to continue doing that for.

Other than institutional lenders turning off the spigots in May of 2007, our single biggest exposure and source of most of our problems was the quality of the property management.  

@Gina Rocillo the first thing you need to do is find out which number is correct and what the source is. 

If you are expecting this person to go out and source the items and then place them in the unit that involves a lot of work, designer time, and designer energy.One way to get yourself on boarded with a designer would be to make some phone calls and see if they have openings for new clients as far as spending the time needed, because in our business time is money vs a family having their living room dining room and entry hall redecorated, where time is not probably of the essence.

You're playing the game the right way.What's your lead source for finding the properties? 

I can find lots of options through online sources (Zillow, Redfin, Rentometer, etc.), but since none of these sites available to me show leased properties I'm having trouble finding good comps to list on the appraisal dispute form.

Where can I find a broker that can source out a construction loan for a spec home?