It's important to note that you cannot include your primary residence in a 1031 exchange, as it must be held for personal use rather than investment or business purposes.However, your primary residence may qualify for the Section 121 tax exclusion if you've lived there for at least 2 of the last 5 years.

@Bonnie Low - it's important to know what services you're paying for.

It is very important that the Wrap Mortgage is written at market terms using a knowledgeable attorney, an RMLO, and a servicing entity.These have risk and I'm not saying a new investor should go out and do them. 

It’s also important to check with your lender to see if they offer this option.Lump Sum Payment: You’ll need to make a significant lump sum payment toward your mortgage principal.

The most important thing is to start, so I wouldn't discourage you from buying.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

I think this really comes down to many investors not even knowing this is important until they learn the hard way.

Verifying last 2 years of rental history very important!

Never underestimate the importance of drawing a clear line between business and personal life.The real investor-agent.

As a realtor, investor, and owner of a construction company in College Station, Texas, I understand the importance of having trustworthy and efficient workers.