As expected, consulting with your CPA and the qualified intermediary (QI) handling the exchange is best advised.

The other non-math issues I'm good handling myself. 

Challenges?

These two zip codes are really up and coming and the builder that handles the construction is one of the driving forces for gentrification of the area. 

im in Orange County CA and there is a huge market here for room by room rentals here. i've been doing this for quite some time (over a decade now), and it certainly has its pro's and cons. my advice if you go about this is make sure you do proper vetting before moving someone in... not only for financials/ credit-worthiness, but also for temperament and expectations in a co-living space. we ask a lot of questions like "how do you handle conflict?"

Do you have insights or advice on the costs and challenges of relocating a house?

It’s always fun to hear what challenges new investors tackle.

As others say, out of state investing is challenging.

Challenges?

Add the financing challenges and that you existing structure likely will become rent controlled.