However, you can likely sell all the properties in the required timeline to do the 1031k, although that will take some effort/cooperation between multiple buyers/brokers, considering the separate markets.  

.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.

It simply depends on your time frame, when you want to actually begin renting the property out short term, and what the loan terms are.

I could be wrong but I thought I saw that Sacramento requires primary residence for the owner for STR.Do you live in Sacramento or nearby ?

Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

I am also looking for tax optimization as the business will require cash reserves and is a high risk business from a liability perspective.

Scaling up properties requires cash flow or equity, continuous education, networking, mentorship, patience, and persistence.

I don't want a nice car or nothing flashy with the money I have made it simply goes directly into the SMP

Is there any sort of requirements for the student to be accepted into the program or does the 8K make you automatically accepted? 

The indoor malls that simply offered shopping and a food court are the ones dying off.I've seen some malls be demolished and replaced with high-density single family developments.