Please explain, because if I'm missing something, perhaps I can add another strategy to my tool belt. 

I’d really appreciate any insights, whether there’s anything I missed, any places you’d avoid, or any tips for STRs in this market.

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

Despite the guru fed “misinformation” about all these under market price deals, they are actually very rare and require (1) the investor recognizing value that the seller and the rest of the market misses or (2) a seller with a need for an immediate sale and a buyer with the CASH immediately available to conclude a very quick closing usually forgoing inspections, financing, and other contingencies. 

Items like a missing doorbell or blinds may fall into wear-and-tear depending on their age.

There's nothing like the experience of others to help you not only sound more professional in the beginning but also miss a TON of pit falls!  

Another example....last year on turnover, one of the refrigerators was missing two shelves. 

We are currently working with our lawyers to take next steps and get our money back along with damages due to wasted time and investments we missed out on along with other people who they have done this too.

What am I missing?

Why do you need a 1031 - your SDIRA is already deferred, am I missing something?