AIG is in a worse boat. 12-18 months ago it was printing what it considered at the time to be free money by issuing Credit Default Swaps (CDS) or insurance contracts against a company defaulting on it's bonds.

We can install laminate, swap a faucet or toilet, wire plugs and change out an old 230v a/c to a 115 circuit in no time. 

If this were swapping out fixtures and updating finishes I can see the temptation to just make the repairs as a property owner but what you describe is a much more complicated project and if done incorrectly without permits you could be opening yourself up to future problems.

The swapping the Title back and forth is just an "excuse," in my opinion, by the residential lenders, who are on commission and have no duty to protect the LLC's corporate veil, to sell you a loan. 

Once you've swapped out one refrigerator (especially from a unit not at ground level), you won't wish to have to do it again any time soon.  

Like, are you adding/removing rooms or adding ADUs or are you swapping out kitchen countertops, or renovating bathrooms?

With all that being said, this leaves the question of "did they do what they said they would (teach the 12/65/10).I listened very closely, and can say that of the 12 ways investing strategies (Wholesale, Short Sale, Wrap, Mortgage Assignment (Subject to), E Partner, Fix & Flip, Contract for Deed, Lease - Option, House Swap, Buy and Hold, Referrals), 7 were covered.  

But if they have or can get $700K from anywhere else they can swap that with the note in their exchange account so they have $700K in their exchange account and the note now outside their exchange account.Then they complete their 1031 exchange and the note is now not taxable (other than the interest).

@Amber Saulsbury @Irina Belkofer is correct in laying the CAP rate formula, as I read in one post above where they included the financing expense which SHOULD NOT be included when calculating the CAP rate.Anyways, here in El Paso, Texas I can buy a multi family (8 unit or over) C- building with a CAP of 8% - 9%, Most investors settle for that, but my value play strategy is, I come in and rehab the units, add individual water meters and charge it back to the tenants, sign 12 months leases, raise rents, swap washing machines for coin-operated machines, you get the idea, anything that helps me reduce the expenses.

There is a saying that applies to 1031 exchanges: "Swap 'til you drop" ...