This can potentially enhance long-term wealth building.Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.Cons:Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.Either one is a valid option, but overall it depends what your financial goals and restrictions are.

It's a 70s vintage deal, 400+ units, with a lot of nearby competition, so certainly there is some risk elevation from the asset/market, but that's the least of the problem here, in my opinion.If the numbers on CoStar are correct, the property was purchased at the very top of the market for $47M, with a $39.4M bridge loan (that would likely mature this year). 

Also with new construction building, that is competition for finding tenants.

Are you implying it’s a bad idea due to competition reasons?

Research local rental market trends for 3-bedroom, 2-bathroom homes to determine competitive rental rates and ensure they align with your financial goals.Consulting with local real estate professionals can provide valuable insights into market trends and potential challenges.

Regardless of the current condition there is ample opportunity to stand out from existing rental competition with attractive styling, design, decor and pro active management. - Profitability & Consistency: Last but not least..prime Oregon Coast STR vacation rentals generally do very well financially.

Since there is a cap on the rental within the city limit, does that means there will be less competition for the rentals  

I would appreciate any guidance on managing these types of financial partnerships and navigating a dynamic, competitive market.

With nobody able to see the unit in person, I had no competition negotiating and was able to get the house for over 20% under asking whereas it should have sold for full asking or slightly over on the open market.

Lenders that specialize in this property type area are reasonably competitive.