This is not a great return, but not terrible.As others noted, there are other risks, like having the property insured at full replacement or purchase price, or if the option is 100% seller financing with no money down or very little, versus 20% traditional down payment, this can start to move it into a better investment.

At that point, he won’t receive any further compensation, and I’ll seriously consider replacing him.By the way, do you have any recommendations for good eviction lawyers?"

The average homeowner is estimated to be underinsured by 40% based on replacement costs and that doesn't include the interior contents and assets, many of which are in the multi and even mega millions.

Here are some of its vitals:- Zestimate: $345K (I know this is typically 10% or so high)- Last Sold: 8/2021 for $281K- Roughly 1400 sqft- Some cosmetic work needed- $25K left on solar loan- The home was build in 2004 and it looks like it has the original AC unit, so I am assuming that needs to be replaced too. - 2 story house with very small rooms and and 2 steps down, imminently as you enter the front door.- Gated community and in a reasonable HOA. - The home is 2 payments behind and already got a letter from the lender about future foreclose.

Boot includes any cash retained or the difference if the replacement property is of lower value than the relinquished property.

It took me 11 years, 25 properties, and 76 doors just to replace my income.

The modest cash flow could be reinvested, eventually allowing me to build a portfolio of income-generating properties.I recognize your point about needing $2.5M–$3M in cash to consistently replace a six-figure income.

Have you ever filled out an maintenance/cap ex spreadsheet with expected lifespan and expected replacement costs to try to accurately estimate sustained maintenance/cap ex.I already know you did not accurately project increased insurance costs. 

Let's clarify this real quick,I understand this model wouldn’t work for every property owner, especially those who are looking to sell outright and walk away from the property entirely, and the approach isn’t designed to replace a traditional property sale. 

Your reinvestment targets for a 1031 exchange would have you purchasing $700K of replacement real estate using all $500K of equity.