@Kezia Edmonson, it's all about the valuations as @Jon Taylor mentioned.In your 1031 exchange you must purchase at least as much investment property as you sold in order to defer all tax. 

More to the point of your post, the agreement of sale should have language detailing precisely how the escrow funds are released to buyer or seller.

Start building close to home and you'll have such great appreciation by the time you're ready for the cash flow to be $20k a month you can exchange out of the low cash flow, high appreciation California market to wherever you decide to retire. 

@Jeff Shaver There is no specific statutory time frame before you can do a cash out refi after completing a 1031 exchange.

I had become very active on Facebook during this time because I needed people to do various tasks for me in exchange for a piece of the deal once it was completed.

Draft precise agreements outlining loan terms, manage risk by diversifying investments, and build relationships with real estate professionals.

A nice home that may some day make a bad rental but a good primary home An exchange in to a state without state income tax to save that 10% in state income taxes.  

If you started somewhere like Texas, where there's more appreciation, you could do this for 5-7 years then 1031 exchange those properties into higher yielding products that'll allow you to walk away from your job.

Do we need to go through the whole condemnation process to qualify the transaction for a 1033 exchange?

I have to agree that a 1031 exchange may not be the best strategy.