It's already pretty hectic, and as we expand in size and territory covered, I wonder if this model is sustainable.  

On the surface this deal seems marginal at best, likely falling in the "not deal" territory and that is without considering how hard you would have to work to even make the deal happen.

There are also areas that can really be bad too, so you really need to have knowledge of the area and boots on the ground in any territory you look to invest in that you aren't local to. 

This is new territory for me. 

I can talk, and I can listen, but in unfamiliar territory, it can be intimidating as to what to say.

@Vlad PopoviciAs Ken indicated, this is territory to consult with an accountant.  

For real estate, like-kind property is widely defined as real property located in the United States and some of its territories.

I guess the tenants could trash the place, but I feel like we can absorb that too should it happen.Still, it is an unexplored territory for us.Years ago, we had a couple purchase the house across from the street from our residence to be their first rental property.

Once you do it once I bet it would get a hell of a lot easier the second time around as it's relatively unchartered territory.

Sure, I've read books and blogs and have hung out with other rehabbers but having someone there as an insurance policy when I venture into unfamiliar territory seems prudent and even more fun.