Interesting perspective, Dan!

What I've seen before is the only time rules are enforced are when neighbors get pissed (ie STR neighbors).I would side with caution on this, especially if it is a newer built community where the rules are fresh with people. 

It’s exciting to hear your perspective and how you prioritize trust and professionalism in your lending practices!

As mentioned elsewhere, breakeven on cash flow is not the same as break even for taxes.Let's make some assumptions:Rental income = $1000Mortgage payment = $400 - but $300 is interest and $100 is principalOther expenses (repairs, advertising, utilities, etc) = $600Depreciation = $250The above scenario creates a break even from a cash flow perspective, however the tax scenario looks like this:Rental income minus the mortgage interest (principal is not deductible) minus the other expenses minus depreciation looks like this:1000-300-600-250 = $150 LossIf your income is over $150,000, then you cannot deduct that loss, but you can roll it over to future years. 

You'll probably lose a little, but at least you'll be done with them and can start fresh.

He was fresh out of college and nervous about his first investment in Omaha, of all places (my home base).

Hey Rae, Not on here often but jumped on to see your post that I think i can bring value to from a Lenders perspective. 

A fresh coat of paint in a modern neutral color and updated lighting can really elevate those spaces.Adding a deck or patio can be a great way to increase usable living space and boost value.

@Richard Benjamin Wilhite, @Bill B.makes some good points about loan terms and the strict identification rules for a 1031 exchange.I would add from a tax mitigation perspective that buying the largest property possible will give you the greatest amount of cost segregation possibility and at the lowest cost since it would be one study rather than several. 

Markets with sub 8% cap rates, generally the cash you need to raise is going to be true equity and since the cash flow would be too tight from a DSCR perspective, you have to put down way more than 20%.