I'm presently a facilities engineer by trade, who does some construction and maintenance for landlords on the side, hoping to get back into the private real estate game.

They have allowed me to quit my job as an Engineer. 

I'm an engineering student planning to start a business after graduation.

After spending 25 years as a Software Engineering and Product leader, I’m now exploring the world of real estate investing (REI) and looking forward to learning from all of you.My goal is to leverage my current investments and savings to build a real estate portfolio that will eventually allow me to transition away from my current career.

In a 1031 exchange, you must reinvest all $450k and replace any associated debt to defer taxes fully.

I'd personally say pulling your water heater out and replacing with a wall mount on demand one, would be worth the cost to have in unit washer dryer if you are staying there or renting it, it would be worth it.its always worth doing the big stuff well and correct even if you are cleaning up after someone, the long term hold always prevails, its just a little frustrating front sometimes, but hang in there!

On buy-and holds we usually replace all the plumbing with pex, no matter what, because galvanized has a life expectation of about 60 years, so I usually take the sooner than later approach.Stick with hard money, like Mach1 or or MKE hard money (Scott Lurie) as they will not leand on a deal that does not pencil out, so you have the added benefit of someone experienced looking over your numbers.

So I would caution everyone to make sure the replacement cost for your improvements will realistically cover your actual replacement cost in the event of a total loss.

Quote from @Michael Bengtson: Quote from @Chris Grenzig: Quote from @Michael Bengtson: I'm an engineer currently living in the DC area, and I've been exploring real estate investment opportunities in Jacksonville.

Assuming that's true, I would recommend looking for a replacement property (or properties - you can purchase multiple in the exchange) with value of at least $725K (selling price).