I'm going to go out on a limb and say that anyone using 1031s as a deliberate thought out strategy who ends up in worse shape at the end of the game has a problem with execution and use of the tool. 

Nexus CPA. 201 Clarkson Executive Park, Ellisville, MO 63011.

Map out your plan, adjust your plan, execute your plan, keep going when you plan doesn't work, finish out the plan, and do it all over again. 

I will definitely get going on getting the houses in tip top shape and get them ready for the market.I would like to keep my holdings in California in possible, but I am not seeing anything in Sacramento that makes it worthwhile of executing a 1031 exchange at the moment.I will definitely do my due diligence and interview property managers along with verifying their references.Since this will be my first multifamily investment, I probably will be conservative and used the cash flow generated to amass the capital needed for future investment. 

They just recorded the deed last week and it was a judicial sale deed that was executed in early May.

This has been a vulnerability that I was not aware of.

To me it doesn't seem like you are any worse off than you started unless you have a signed and executed contract.

If you could JV with an experienced flipper, looking directly over their shoulder seeing how the execute it can be priceless.

Not deal breakers.I'm currently an active retail mortgage originator, amongst a couple other things, but Its been my experience that working as a wholesale account executive from 2000 until 2016 and being on the backside of literally thousands of loan closings since the inception of the newest regulations that I can recall only one instance of a set back caused by cents on a transaction, but that was early on in the Dodd/Frank era and was the result of software, that was subsequently fixed by an addition 3 day waiting period, because that was the safest play for the lenders ***.The take away here, again just in my opinion, is on the front side of the transaction, write the offer at whatever it takes to get the contract done, then hand it off to your favorite lender...they'll figure it out. :)

That being said, might wanna learn a thing or two about managing those units and executing a business plan, or having one for that matter.