The financing used for the illustration is non-recourse at 60% LTV at 4.75%.Cash Purchase:Total Cash Invested:$124,800Total Property Price:$124,800Yearly Cash Flow: $7,437Annual Cash on Cash Return:6%Financed Purchase:Total Cash Invested:$52,980Total Property Price:$124,800Yearly Cash Flow: $7,437Annual Cash on Cash Return:14%These numbers are net and include taxes, HOA fees, insurance etc.

I was trying to illustrate that while you might be able to build a credit rating as far as having loans were concerned you somewhat offset that by increasing your debt to income which lowers your credit score.I have found that in most cases if you make a large enough down payment you will find someone that will make the loan you want.  

The passage of time, although not an element of abandonment, may illustrate a person's intention to abandon his or her property.

My understanding of the various parts of the 1031, using my current transaction as an illustration:#1 The replacement property needs to be more expensive in total than the relinquished property.  

Below is a diagram illustrating the cost difference between direct vs. turnkey.

Assume the following:PV = $100,000nPer = 360PMT = ($699.21) - ensure this number is always negative when used as formula inputRate = 7.5%For concept illustration purposes let's look at RATE:Rate = ([nPer,PMT,PV,,.1) (I always just plug the guess in at 10%)RATE = 7.76%This rate will be off slightly because the final payment in the amortization schedule is not handled correctly.  

If we drill into that tactic one step further, presenting a settlement check to the audience to illustrate gains on a note investment takes and treats it all like real property.

Based on some offline data I have, and provided just as an illustration, 2018 income caps in the Dallas area is $82,450 for 1-4 person households and $108,850 for 5+ person households.USDA loans can take longer to close than conventional loans. 

@Mark DolfiniI think it illustrates the point nicely, I agree 😁

This situation really illustrates the danger of owning rental properties and having "no cash on hand for the repairs".