However, like everybody mentioned before me, those houses needs full updates.Especially mechanical and electric service upgrades.Most likely, they work on older wiring.If you don't update it now, it would be fine, but if you decide to change it to central air etc... it will not be enough to support the new system.I would budget everything, and make smart upgrades.

@Faraz Rashid, I sense that your question is really more about balancing the investment than the mechanics of the 1031. 

IF you had knowledge and capabilities to self-manage and lease than yeah, it would be an option, but you don't as you said so it would be like me saying "hey, I'm on a sinking ship and know nothing about boat repair, what do I do" and they say "oh, it's easy, boat mechanics are BS, just google it and you will figure it out", yeah no, Momma didn't raise no fool. 

You may wish to confirm that the new 401k provider has experience with the particular investments in which you intend to invest your retirement funds as you very likely will have questions in terms of the mechanics (e.g. how do you invest in real estate, etc.).3.

I also faced this dilemma while in undergrad school finishing up my Mechanical Engineering degree.

Other business interests/abilities like car mechanics?

-Got to love Pitman prop taxes, super high-$300 is a month for cap ex/maintenance is fine, but as @Stephen Kappre make sure you verify the condition of all the mechanicals of the house-you'll spend about $300 a year on COs/registration with the township.

The home is in working order, cosmetically not so nice but the mechanics are solid.

Yes, a Buyer may want to confirm things by paying their own inspector, but if you can get an accurate picture of the roof, HVAC, plumbing, sewer, and electric, that eliminates 80% of the mechanical problems that cause Buyers to back out.

On top of that, they spent over $800 in the span of ~50 vacant days.Long story short, I am willing to pay Meridian Property Managment (in Memphis) the average cost of utilities, but that only comes out to $438.75 for the days they were there.This would make me $372.73 (utilities owed) + $200 (they did not replace a fixture, as confirmed by my realtor) short of what they are asking for, and they are threatening to file a lien (presumably mechanic's) if it isn't "paid in full."