This is a 1031 exchange -- they're selling a rental property in San Diego, where they live.

I seem to remember there being property tax benefits for veterans in San Diego as well but I think it might only be for wounded vets.

I've been locating abandoned properties here in San Antonio with the belief they are more likely to be distressed and have value. 

Hi, I'm looking for a commercial real estate agent in the San Antonio area who specializes in small apartment buildings. I currently own a few residential properties, and I would like to start looking at 5-10 unit pro...

I live in San Francisco.

Is this true in San Diego?  

Some people do but they usually will invest out of the area for example if you do the math living in San Francisco your money will work harder for you if you rent in San Francisco and invest in other parts of the country as opposed to owning in San Francisco. 

The price seems to be about $200k less than anything you could find in San Diego county.I agree with the other comments that you should always go with the worst-case scenario in analyzing the deal (plus the contractor is a better expert for repair costs than your agent, but I would get multiple bids).It doesn't seem like there is enough meat on the bones for this deal. 

Also $4000 is insane for a SDIRA and LLC.LLC is less than a $1000 and a SDIRA is $300 - $400 to setup.

I live in San Clemente, Ca.