But then again a large swath of syndicators that jumped in when they did have had major struggles to full blown liquidation and 100% capital loss's..

This one was strange because I ended up splitting the companies and partners involved in the deal so we liquidated halfway through the project. 

If the drywall cracks in the next year or two, or the doors start to stick, then you likely have a larger settlement issue going on, and will likely need to call a foundation repair contractor. 

(larger would require fire sprinklers). 

@Matthew Posteraro I wouldn't necessarily say that it is a way to make them more hands-off by scaling up to larger properties.

Two of the biggest challenges I face are that I’m not very liquid at the moment, and the Seattle area is extremely expensive.

It's doesn't really sound like you are much into being landlords so doing a 1031 might just change from "annoying when things come up" to full fledged head aches when you buy more and or larger properties in your current market.

I will be quick to admit I have only had experiences with small rentals (6 units and smaller) so if you are looking for help on larger apartment complexes I would not be a great resource.

This thread shows there is a need for a larger guided discussion on best practices as it relates to (renters) insurance.

@Ken M. if the Morby's subto wrapper cant payoff the underlying 1st position loan when it's accelerated because of the sale, then he/she would have to liquidate the wrap note (by selling the note) to generate the cash to payoff the underlying.