However dependent upon taxable income you could get away with a pretty low tax bill due to favorable capital gains tax rates.Be sure to work with a qualified intermediary and a tax professional to ensure you comply with all 1031 exchange regulations and to be sure you keep basis correct as all a 1031 does is defer your gain.Happy to help run some numbers or do some basic analysis for you if you would like. 

Here are a few thoughts based on your questions:Markets to Target: I’ve found success in Detroit, where the rent-to-price ratios are particularly favorable for cash flow.

I’ve seen buyers in situations like this secure terms for primary residence use compared to investors.. so it might actually work out in your favor if your buyer wants to live in the home.Funny enough, a friend of mine ran into a similar situation in Austin last year.

I am biased in favor of taking on debt to grow a portfolio, but hear me out.Depending on your investing goals and where you're at in your investment journey and life can determine when one may be a better option than the other.

Maybe that is not the case today, but I have always favored tanked WHs, especially on my own homes.Most people may not care about this, but.....in the event of a disaster, if you have a tanked WH, you will have 40-50 gal of stored accessible water at your disposal.

Mechanics liens differ depending on where you are but in many areas the laws are favorable towards contractors and suppliers.

@Bruce Lynn are you still favorable on Forney for a SFH a rental property investment.

I've been on the hunt for a California STR property and Oakhurst seems to be one of the few that are in favor of STRs. 

That creates a really nice price / rent ratio which is favorable for investors looking for cash flow.

The longer it takes the bank to underwrite the loan, the more likely the loan request will be rejected or at best expect to receive less favorable terms.