So biting the bullet and purchasing two for your 1031 might make sense if you anticipate that.

Usually 2-3% is what investors anticipate, anything more is a bonus.

I am still running the numbers especially now that I have realized the insurance much higher than anticipated. 

I'm anticipating a lot of repairs on that unit and some repairs on the other units as well. 

I just did a cash out refi that closed 2 months ago for $136K and my closing costs were maybe $7K, which was high as it was an out-of-area lender (only reason I went with them was no prepayment penalties and I don't anticipate holding this property very long).

After repair value: $253KAnticipated or actual appraisal issues: None anticipated - may be able to use equity from other home or funds from my business to supplement a bit, if needed, here.  

Should I wait to purchase anticipating a market crash?

Although that may be a good place to start, the time it takes to get there will be longer than you are initially anticipate.

I think the anticipation for a fun summer is the bet they are making.

That's just a bonus.So if I can try to anticipate what you are thinking - "Then how do I buy a property at market value and make it worth more?"....