Number wise, this is a good deal.

Like much lower down payment requirements and lower interest rates.My commercial banker once offered me wise words when I laughed/lamented about how much easier my loan was for my own personal home vs. the loan he was helping me with for one of my non-owner occupied duplexes. 

A 1031 requires a lot of things to line up just right, timing-wise, so if this is a deal you can make work, and you are able to offer timing flexibility, you may find you can negotiate a bit.

But I get it for many folks other wise Air bnb would not be so popular..

. ;-) And as the Wise Man Repeatedly Says "Never, Never, Never Trust Wells Fargo".

And would allow for pretty substantial appreciation ($ wise) on just a few units.Or am I thinking about this completely wrong, and there are much more obvious ways to get better returns without a ton of work?

If you're comparing the a condo sale in the Central West End to home sale more North say around Vandeventer area, then the condo sales will be higher than home sales just because that is a considerably different area value wise.

If you are looking for guidance find a top producer that is ethical, will give you thier time, and has what you want, there are too many crappy agents in the business, choose wisely if you go that route.

So, we are looking for an efficient (energy-wise, because we pay all the utilities), safe, and relatively inexpensive.

Looking back however, I'm very thankful for this experience as I've learned how important it is to choose your partners wisely!