They are in Anaheim CA.

Don't really know why I'm reacting like this to this one, Linda, but the suggestion that you can "have your cake and eat it too" down in C-class just sticks in my craw.

@Jarod Vaughan there is a North OC meet up that was running before COVID in the Anaheim area.

@Vishal Taylor you can have your cake and eat it too through the use of a-- 721 UPREIT.A number of the top REITS allow you to initially 1031 into a DST on a temporary basis and after 2 years the REIT absorbs the DST and converts your ownership into shares in the REIT. 

My hope would also be that the expected rise in rents would improve my cash-flow on this property in the future (and that the Phoenix area appreciates like many expect – icing on the cake).I have access to a $250k private money loan at 8%.

The cash flow is just the icing on the cake, the real prize is the equity that it creates.

What many people ignore is that you can get deals in Mexico whereby you can get a higher return on investment if you pay cash for the property then if you were buying a property in the US with a mortgage. a nice by-product of that is that it's much less risky.That might not be your case if you buy a lifestyle property but then, you get an additional ROI in terms of your enjoyment of the property and, as icing on the cake, you get the capital gain whether you rent or not.

Can’t have your cake and eat it too!

Imagine baking a cake and having all of the ingredients, but not having the recipe.  

You take on a lot of risk doing a deal like this and depending on it to cash flow property so just try to focus on a deal without these extra spaces and look at them as potential icing on the cake later if it works out.Reach out anytime!