The COVID appreciation spike won’t last. 1031 exchange these properties to a multi-family that cash flows.

I don't love this strategy, tbh, because it doesn't really spike on any single strategy (cash flow or equity). 

This area, like many others in the US, has seen a post-COVID spike in real estate prices.

Note the meter usage and then check it periodically for spikes.  

Best case scenario (or worst case depending on how you look at it) is that the initial price reduction because the sudden influx of build lots hitting market, will be offset by the spike in material and labor prices and you see continued normal growth/appreciation in the market.Its no different than where we are today.

Once that starts to happen it will cause an immediate spike down in home values as they hit neighborhood markets and are incorporates in the market analysis or appraisal reports.You may want to look at options now and keep in mind if your just doing a rate and term refinance you might be able to waive the appraisal.

Fast forward (4) months Feb 2022 through year end will cause a downward spike in these inflated prices.Prices are already coming down in certain areas along with more inventory. 

After Hurricane Katrina the rents and the values in the area had a forced spike due to the shortage of housing available.

If it's your first deal, you're probably better finding something that is a slight value add than a major remodel, but it's just something to keep in mind.If your goal is to find yourself with lots of money to pull out after rehab, you may find that the slight fixer-upper FHA loan property isn't going to get you there unless appreciation continues to spike.

What is the going rate on hard money in South Florida after the spike on inflation?