My exit strategy is to hold the home 2-5 years and to purchase another home with the new equity I would have achieved by renting the bottom portion and with market appreciation.

You can use the 1031 to sell a larger unit that provides better cash flow while minimizing active management.You can either try to cluster those sales together so they close in a way that lets your replacement property be listed on each 45 day period and you close on it within 180 days of the first sale (the first exchange that will expire).Or you could do something like a reverse exchange where your Qi purchases the new property and holds it for you for up to 180 days while you sell all of your properties. 

Reason is if you hold for 3 to 5 years before selling you still have 10 to 12 year primary ease for your buyer on exit to get best rates and term.

Investment Info:Single-family residence buy & hold investment.

I recently left my tech job to focus on different aspects of real estate investing including flipping, long term holds and real estate affiliate marketing.

@Ross DenmanHi Ross, I would love to get a hold of that inspector for myself. 

New to this local market, I wonder whether buy and hold is a good strategies for this market (balanced between cash flow and appreciation for class A or B, I know cash flow is difficulty in general given today's real estate environment )?

Sometimes, especially when the valve doesn't hold completely, a plumber might want to replace this valve when replacing the supply line.

Especially a meet up on private lending, ADU additions are discussed regularly (new attendees looking for money for their ADU additions without being aware that no one there will lend on ADU additions).  

Some people hold it just because they won't make as much as they want, but then the market goes down and they lose more so you to know the sale and rental market as well as the trending nature of the area.