I agree with @Ashish Acharya if you're interested in reinvesting the proceeds into another investment property and your goal is to minimize your tax liability a 1031 would work out well for you.

I don't know anything about that space, but it sounds like a helluva grind and time-intensive venture.

Sales is a time-intensive venture, and it takes years to develop a pipeline of clients.

Having developed a majority of my career in CA the regulations and red tape for construction and development are intense. 

If you have the time to devote to it, direct to seller methods can be very effective, but will take ultra-patience and intensive work. 

I'm using my workout time to educate myself daily and feel overwhelmed, but excited to get going.

I would love to connect and see what we can work out!

Private Money is whatever you can work out! 

This could give me an option as a house flip if the numbers don't work out in my favor for positive cash flow.Target Returns:Given the higher risk, what cash-on-cash return or annualized return should I be aiming for?

I assumed some would need replaced, which would be okay, but I would hate to see it all trashed.I guess in that vein though, I hear that a lot about LTRs -- the horror stories -- and we have been blessed with amazing tenants (generally) so I was thinking it would be along the same line where it would be something where you would want to charge high-end and screen intensely to try to get a tenant that just is transitioning and can benefit from the furnishings.I know that could still happen though, even with all the precautions you can take, so it's something good to consider!