I learned the drywall was cracking in October, but I'm not local to it so I wasn't checking it regularly.   

I assume 15% of the rent for regular repairs and capital expenses (roof, furnace, windows etc.) and 5 % of the rent for vacancies.

Maybe you could extend the closings with some additional earnest money (even if you release it) and buy the time so you can simply do a regular 1031 exchange.  

Both of our employers now offer roth 401k contributions instead (with matching going into regular 401ks), and I may take advantage of that too, but another small hit to cash flow.At some point, do you just suck it up and take a 10% penalty?

Once you go through the whole process, you'll know exactly how it works in your area for the future.If the sweet nature of the dogs is what's bothering you, and how unfair it is that pit bulls as a rule are treated with what could be seen as deliberate malice by the media, give some money to the Humane Society to do more to advocate for the Cause.

@Nadia Jones Starting and running a fund is a separate business because it's something that you need to actively market for and regularly work on attracting capital to invest in. 

Even if your transfer goes through, it sounds like the regular servicing we'll be the same quality as you're experiencing now.We transferred two loans to Del Toro.

Rental properties are a high CapEx / low cash flow business model by nature.

Don't discount that.Real estate remains a valuable investment despite current challenges due to its tangible nature, long-term appreciation, and potential for consistent rental income.

For a regular 1031 you will find a range of prices from 900 ish to 1500 ish for a complete exchange.