A 1031 exchange is not right for everyone, but when comparing the numbers...Option 1: Have a larger asset base to work from and reinvest in income producing properties (via 1031 exchange), orOption 2: selling, paying taxes, and investing in the stock market (which may or may not be paying dividends).An exchange can also be thought of as an interest free loan from the government - you only pay the taxes when you do not reinvest in like-kind real estate.You do make a compassionate argument for your current tenants, and that does not go unnoticed, however as @John Warren pointed out, your return is very small. 

HOA in theory can remove free rider market failure if well managed, when there are costs and/or needs for management shared by all.HOA kind of philosophically touches on the oft debated (and oft oversimplified) ideological debate between centralization or decentralization of authorityMy thesis would be: I suspect that HOA developments have higher property values in general, however when controlled for development budget on a per home basis, I would wonder if this actually holds up over time.I have heard anecdotal stories of corruption within HOA bodies, and mismanagement. 

We're nearing the end of our due diligence period, so I wanted to double check that we weren't getting ourselves into a mess before our money goes hard.I also wasn't sure whether to have the current owner fill the units, as I've heard horror stories about owners just filling the units with warm bodies in order to show the higher occupancy on paper, when in fact, they turn out to be not the best tenants.All that being said, I absolutely agree that this is a glass half full situation, as we will get to push those rents sooner than expected.

I mean in my fundings  we are 180 days on average and these are professional flippers.. and I do 100 plus a year of them so I have a pretty good body of work to run averages on. 

Operating agreements can be large and important details can get buried within the body of the text.

You are limited to holding no more than the equivalent of two month's rent: CLICK HEREI would also recommend you read a more technical description of how this works, written by an accountant: CLICK HEREI highly recommend you consult an attorney or your state governing board for clarification.

Get that tenant out before he figures out the heavy hand of government rent control. 

Government knows what's best for us after all.Mboro is a rock solid rental market.

My goal is to convert all of my units to government program funded, so this might not make sense since it seems as though most government programs require that the landlord pay all utilities anyway.3.

Most all are rented with government agency subsidized rents such as Section 8, as all bills paid units.