This allows you to be able to indefinitely defer all of taxes on investment property, and use it to purchase larger or multiple investment properties.

Significant improvements excluded were homes that after the 2017 sale were torn down and built new, large renovations, additions added, extensive deferred maintenance addressed. 16 of the 152 homes were excluded leaving 136 to further analyze.Obviously there is some subjectivity in determining which homes had ‘significant improvements’.

A lot of these properties are still trading at low caps, and they have a lot of deferred maintenance.You're seeing a lot of these older properties being traded now.Gino

@Nick Wimmel  - I defer to the experts that have already commented on the South Bend area. 

Perhaps the tenant is using too much TP but reading your follow up posts suggests your home has deferred maintenance issues you’re unwilling to properly repair and only willing to implement duct tape level corrections. 

So if you sold your new property for exactly what you paid for it two days after buying it you would still be paying the tax that you had deferred in the 1031.So, going from CA to CA doesn't benefit you.  

Many times, issues come up due to deferred maintenance.

Are there potential gremlins like deferred maintenance or large capital expense looming? 

Using strategies like a 1031 exchange allows you to sell and reinvest in another property while deferring taxes, so I often factor this into decisions.For me, it's a combination of interest rates, appreciation, and potential cash flow.

It is my #2 is not allowed but I defer to the experts @Dave Foster or @Bill Exeter.