But it seems like 'nothing' comes for free.  

I am about ready to just manage myself from out of state and have a couple of local handymen help me out when things come up.

Between the equity on the condo and the extra cash you have, you can purchase 2-3 homes. 

The Co-Living Industry in the USA (2020–2025): A Comprehensive AnalysisIntroduction-living has emerged as a significant trend in the United States housing market between 2020 and 2025.

I agree that I am bullish on this taking the PHX market to the next level.

For those reasons I see it quite remote that any state could come up with legislation to stop a sub 2 transaction or automatically call it.. there is already a vehicle in place to call the loans.. its up to the holder of the note to enforce it if they wish..

Is it as simple as getting the site designed and engineered for the footprint, cleared and graded (all of which I am comfortable with), and then hiring a GC to build the building?

It's doesn't really sound like you are much into being landlords so doing a 1031 might just change from "annoying when things come up" to full fledged head aches when you buy more and or larger properties in your current market.

@Olivia Melikian Finding the right agent to work with is important.

I know there is a lot that I'm going to need to learn, and ultimately it will come down to how much the student puts into it.