., but for now, we like to only consider semi-stabilized (with minimal deferred maintenance) or fully stabilized, cash-flowing properties. 

I like new construction since there isn't any deferred maintenance and the properties should be relatively maintenance free for the first couple years (although it's good to include maintenance/repairs in your pro forma and maintain reserves just in case). 

I read that as meaning that a $100,000 property can have $15,000 of deferred maintenance as long as its not immediate roof work, outdated wiring, mold or water issues.  

They can qualify as 1031 replacement property so you could continue to defer taxes. 

In order to defer all of the tax you must purchase a replacement property that is at least as much or greater than what you are selling for.

However, I also think that a lot of people who set out to pursue this strategy miss the fact that it is literally a lifetime commitment to deferring taxes, which by definition means not realizing the gains.

One symptom is leases that have not been renewed or increased in years, but you also find a lot of deferred maintenance.I do a survey about rent increases with our RPA members every year here in Milwaukee and most of them have between 5 and 50 units.

While they typically have considerable deferred maintenance, we're getting great terms.

I can’t diagnose your issue from the pics (though it seems repointing needed) I can say that there are contractors in this area who will immediately jump to the $35k+ solutions when they see deferred maintenance on these types of foundations.

We were able to buy low in a good neighborhood since the home was in need of some work, mainly needing cosmetic work and some deferred maintenance.