However, we did have a tenant who stopped paying, and because of how impacted the eviction courts were, it took 6 months for him to get evicted.

While this can be good for long-term appreciation, it can also impact cash flow for buy-and-hold investors.Insurance Costs: Florida's hurricane risk can translate to higher insurance premiums for property owners.Competition: Florida's popularity attracts a lot of investors.

How much should I consider the impact to the higher interest rates of today?

@Jemini LeckieRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Joe Gellenbeck Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

As Stuart mentioned, there are several issues that might arise with the property, which could definitely impact your cash flow. 

I'd normally also suggest Marshall, Black Mountain, and Old Fort, but many of these towns were heavily impacted by Helene.

Even if one tenant is responsible for rent payments, the others will live there and impact your liability as a landlord.Accountability:Requiring all adults to apply and sign the lease holds everyone legally responsible for the terms.

Since you are only selling the development rights and not the entire property, the existing mortgage on the building does not directly impact the 1031 exchange of the development rights.