Surprisingly, these homes that once sold for $7,000 are now selling for close to $1,000,000 and it doesn't seem as though the rate of appreciations is decreasing anytime soon. 

It was built in the 2010s and located in an established neighborhood with convenient access to schools, amenities, and major transportation routes.

Quote from @Henry Clark: Quote from @Jake Andronico: Quote from @Arn Cenedella: @Jake AndronicoI’ve looked into them but have never executed one.Let me say they will be expensive and complicated.I think what you will find if one is trying to defer $50,000 to $100,000 in gain, it’s not going to be worth the time and trouble.On the other hand, if client is trying to defer gain of $500,000 to $1,000,000, it’s worth the time and trouble.I use First American Exchange for my own account a dozen times and they have been right on the money.Google them and reach out.ArnIt's definitely more expensive than a traditional 1031 exchange, but being able to secure properties upfront can be super convenient.   

I've considered a property management company, but the cost just doesn't seem worth it although it would be convenient.

I know most lenders in the bizz will not make this mistake but with all these mom and pops jumping into lending I can see some of them not knowing and just record it only to get a nasty surprise when they go to sell..

Quote from @Jaron Walling: After reading this I'm surprised the OP lasted 2 years...

It’s a one-time cost, easy to maintain, and shows you’re thoughtful about providing convenience for your guests without breaking the bank.

It’s better to build those numbers into your pro forma now so you’re not surprised later. 4.

For this reason, I find it surprising that you would question my knowledge of the region without knowing me.

(I know a lot of investors who are doing this, but I've been surprised to find out that it's a new concept that others haven't considered.)The more units, the better in this scenario because you can hedge your bets with more units.