I have done many 1031, and never did a Reverse 1031 and was advised by the Qualified Intermediary that they are more difficult and expensive. 

.: I always play it by ear.

In that case, I wouldn't say the PM necessarily made a "mistake" by keeping the power on.

So - somewhere 2 hours away, or somewhere you like to vacation in, or where all your family lives, or where you plan to move someday.Too many people are trying to do exactly what you're doing - pick a market based on a formula - and they end up buying a random 'cheap' property thousands of miles away, turn it over to people they've never met or even spoken to, and then... lose money.  

Maybe an outside the box idea would be to try to force some equity by making some improvements in the house you live in.

If you can manage to keep up with the real estate market in these markets that we have come to hit, and still be able to navigate the unchartered waters.

Or did your SO make a $50-100k mistake by not seeing that it did?

We bought a new build years ago (and sold it 3 years later when the market turned up) and our TOTAL cap ex was $550 over the 3 years. 

Unsolicited phone call offering to buy a condo I own 500 miles away in Texas panhandle.  Price is probably above market,  17k down finance 75k @ 3.8% 35 yr amortization.  3 year balloon.  Also offered cash at 30k less...

Open to either somewhat of a fixer upper or turn-key properties.