I assume as you guys both mentioned we are safe, but the 1031 website mentioned:"property held "primarily for sale" is also excluded.

All of this excludes appreciation.  

The "expenses" include & exclude the followingvacancy is listed as an expenserepairs (but not capex)property taxes and insuranceany utilities you payadvertising, etc.management (even if you don't hire a manager, it's always good to include 8-10% for mgmt. so you can see what you're earning on your money vs. what you're earning for your time).

I suppose if you change square footage to 1,000 or more, you are more likely to exclude all 1 bedroom properties. 

Excluding primary residence....I have about 1/3rd of my net worth in real estate, about 1/3rd in tax sheltered retirement account that hold stocks (Or stock like assets..MLP, REIT) and 1/3rd in taxable brokerage or cash accounts.

But when you break down the loans small print, the loan is designed to exclude investors/multi-family properties  from using the loan product.

If I sell at 1 year and 1 day, I get the preferred tax treatment of 20%.....I don't anticipate messing with 1031 for a while so let's exclude that for now.  

Almost every single P&L statement and pro forma a realtor/broker sends me has some expense excluded/missing.

Notably excluding if, when and how deaths may have occurred in the property.  

If they were included with the property, and there’s nothing in the lease excluding these appliances and specifically stating you won’t cover them, sounds like it’s your responsibility.