You only have to use a fraction of your buying power to purchase the asset.  

Account Closed One thing to consider about house hacking in an expensive market such as LA is even if you can't live for free, paying a fraction of your current rent could be worth while and catapult your savings/future investments. 

@Cody Richard Find a deal at a fraction of ARV.

You're now covering (hopefully) every dollar in PITI and hopefully some reserves, meaning you live as close to "rent-free" as possible and saving a ton of money for the next investment.What you've described is buying a super expensive mansion-multi where someone covers a small fraction of your very high costs of living.

It would be a fraction of 1% of homes, and probably have to be a noticeably hot climate, that would require rehanging drywall.

The way we now deal with the FX risk this is diversification, I can be pretty relaxed about our Mongolian loses as it is a fraction of our investment pot. 

If someone is staying for 90 days and the air goes out for 2 days, that's just a fraction of their time spent there.

@Louis A.I have not used it personally, but this service will do the appeal for a flat rate which typically ends up being a small fraction of what the typical tax appeal attorneys cost.

That's not to mention it would be a fraction of the effort. 

You would each set-up your own separate 1031 Exchange and each separate 1031 Exchange would identify a fractional/percentage interest in the new target replacement property.