Neither solution is particularly desirable, as both have undesirable income tax consequences.The sale of partnership interests are specifically excluded from tax-deferred exchange treatment under the rationale that a partnership interest is a personal property interest and not a real property interest, so more complicated structural solutions are required when partners desire to go their separate ways and some or all of the partners wish to structure and complete a 1031 Exchange."...

If your rents get below market rent, it may never be possible to get the rent to market rate with the existing tenants.There is no better way to get rid of an undesired rent than to raise the rent above market rent and have them give you notice. 

A 4/1 is often undesirable.

In addition, some parts of the country have snow, ice or cold weather which makes moving undesirable.

I take dilapidated houses that destroy the value of neighborhoods and attract undesirable elements to a neighborhood, make them nice, add modern amenities, and rent them out to decent people at a fair price that is usually slightly/somewhat below market rates.

It has 2 undesirable Section 8 rental trailers across the road, but the rest of the neighbors are brick homes and great neighbors.

So, of the place is a pig sty, then we inspect the apartment 1 or 2 weeks before then tenant moves and we have our contractors and cleaning crews lined to do their work like gang busters (whatever that means).We just started using zillow.com about a year ago to rent units and for a while we got some fairly desirable tenants and for the past few week's we've been getting the most-undesirable tenants.

Not to mention the properties on the judicial sale list will be in undesirable areas, and will need way more work than you think.

Are there tons of undesirable homes out there?

I am willing to do any kind of grunt work or undesirable jobs of multi family investing.