Ran the numbers every which way and it made the most sense by far.  

Hope all of that makes sense but feel free to post with anything else. 

Conversation is no different, motivation is definitely there, but telling someone, face to face, for this deal to make sense; 1 they over paid for the property, 2 they are gonna have to take a 40k loss in less than 12 months.

- The tenant may be granted permission to customize the property such as painting the property to their liking or upgrading flooring or customizing bathrooms which can create more feelings of a sense of ownership in taking care of the property.- The rents are usually $100-$200 higher than the average rental amount which can create a higher monthly cashflow.- Tenant takes care of most of the fixes and repairs for the property, except for large ticket items that should have been taken care of before the tenant occupied the property.

With time rents will go up and you'll start cashflowing in year 2 or 3, and year 5 to 10 when interest drops you can lower your payment and cashflow much stronger.

On top of that, many policies have become more strict (especially in the last few years) with replacement cost language because replacement cost estimates did not keep up with inflation for a period of time AND/OR replacement costs on many older properties had skyrocketed so it made more sense to calculate replacement values with functionally equivalent rather than exact materials.

I am the type of person that is normally looking to save a money to increase my investing so the thought of paying someone to do my taxes when we could do them ourselves didn't make sense. 

So to save 15% capital gain minus qualified intermediary cost does it make sense to do 1031 exchange in selling the old one and do 1031 exchange?

Make sense with our need for inventory nationally, but this is also very market dependent.     

Everything was progressing smoothly until I met the appraiser to provide access to the property.Right away, I sensed something was off.