If I may ask for some additional clarification, are you saying that my new residence that I'll purchase (or build) needs to have an investment component in order for me not to have to pay capital gains taxes from the sale of my current investment property?

I've heard some mixed reviews about this site and their unexpected fees, but I'm trying to calculate that into a lower purchase price.

Any unexpected zoning or licensing issues???

There were a few unexpected repairs during the first year, but I attribute them mainly to poor maintenance of the previous landlord and tenants.Lessons learned?

So if you use LOC to purchase and then need extra money because something goes over budget or unexpected things happens most hard money lenders can't do much for you at point and your stuck.Often hard money loans are interest only or have interest rolled into payoff. 

Keep saving until you have the cash for a down payment as well as a solid cushion to help deal with unexpected expenses (and there will be more than a few).

@Sunil KapoorThe major component to discuss: how passive or active do you want to be!

The issue I see here is that after the basic fixed costs per month, there is about $1600 left for unexpected and routine repairs, maintenance, etc.  

Well for the people that are all worked up about damages moving a fridge.....better not let them move a bed....dresser....couch or any other decent sized piece of furniture.... they can ALL damage walls and doorways moving that stuff in/out...... you had better supply all of that and forbid it to be moved...... ridiculous.....If you store it, I would highly recommend you require it to be plugged in... you can leave it on its lowest setting ..... refrig appliance do not like to sit for long periods without functioning...... bad for the components

NOI is always a heavy component when deriving a value based on a sales comparison approach or income capitalization approach.