What gets expensive is replacing a deteriorated side sewer from the house to the street, when they use the cleanouts and find out what's going on down there. 

To ensure my replacement property value is at least $600k, I was considering putting the remaining $100k into a DST.

Yes, that makes perfect sense, especially in such a large transaction to find the replacement property.

My landlord insurance will have to cover the costs of fixing the interior like replacing carpet, interior painting etc.

@Sunny WuPerhaps offer them an incentive to also help in finding a replacement tenant.

Did you figure in the cost of the other tenant paying less than market rent until you can get them up to market rent or replace them with another tenant and how long that will take?

Eventually, I’d like to start using the cash flow to pay myself and work toward replacing my day job income.

I have yet to complete a walk-through of the property and see what renovations may be needed (potential for HVAC and interior, but from my understanding the roof and windows were replaced within the last 7-8 years).

Keep in mind with a 1031 exchange, it's important to ensure that the total value of the replacement property is equal to or greater than the property you sold.

I’ve never had difficulty filing a claim with Airbnb as long as I showed the broken item and the cost to replace or fix it.