Both properties have a substantial amount of equity that’s essentially sitting idle.Would it be a good idea to tap into this equity (through a HELOC, cash-out refinance, etc.) to fund future fix-and-flip projects or purchase additional rental properties?

I think your future self will thank you for doing that.Perhaps take out an equity line of credit in case you need it and using a property manager.

Passive losses exceeding this limit can carry forward to offset future passive income or gains.

Again, there are a lot of things that you are implying about our business on a platform where the information will stay for others to read in the future.

Suggest you pester them with questions to learn the eviction process, so you can save money in the future.

You can use that scenario as a learning experience when you may or may not encounter future challenges. 

People will rent homes in that area because they cannot yet afford to buy, but hope to buy a newer home in the future and keep the kids in the same school system and around their same friends.

Make sure the previous property management company did their job and communicated a change in management prior to you taking over--along with your contact information.If they have no done this, they should so the tenant doesn't feel like a scam may be going on.Just make sure they're away of where rent payments need to go and who they can contact in the future. 

Congrats again on a successful 1031 and looking forward to reading more about your journey in the future. 

This will give you greater insight and what a property manager needs to do to efficiently manage your property once you are ready to hand the property over to a manager in the future.