At the end of the day; you need more money to do something like this.MAX LTV on new builds is 80% LTC, Meaning if the build is $550,000 and Land is XAdd ($550,000 + x ) * .8 = LOAN AMOUNTYou would need to come in with MINIMUM 20% of the cost in addition to closing costs and reserves, $80,000 is not going to cut it for this project.

I wanted to get back in the game again but don’t have much in reserves that most if not all HML require.

To really know if a 1031 exchange is worth it for you, you first must find out what your net gain is and subtract state and federal taxes from that.

I have cash reserves and money in retirement accounts, but I don’t want to dip too deeply into my reserves.

Quote from @Jim Stanley: You should reserve insurance for large claims.Contact the city and report the issue to them.

This is after covering all expenses and setting aside a certain amount for reserves to cover future expenses like capex or vacancy. 

Just plan for reserves if it takes a year or two to break even.Take your time, do the research, and trust the process.

The data posted to the HUD website is update for the Federal fiscal year beginning October 1 of every year.

Prepare financially by saving for down payments, improving your credit score, and setting aside emergency reserves.

If is 65% and below LTV you won't need to provide reserves. 1.