If it was me...I'd check with zoning to find out how many dwelling units I could build, and I'd find what the requirements are for those units (type of house, height and setback restrictions, etc.).Then I'd find out what local builders think the cost to construct would be - just get a cost estimate per square foot for 2 or 3 different levels of finish.

Plus these companies are subject to a lot of regulatory scrutiny (SEC, SOX).This Tardus strategy truly makes me cringe.

AZ is not prone to major natural disasters so investing there is less risky with regard to those types of setbacks.  

This article presents three key factors to consider before deciding that now is the time to sell/exchange: 1) regulatory, 2) economic and 3) personal timing.1.

Property Owner, you have an extra 1000 square feet with enough setback to add a 500 sqft ADU on this lot.

Having that sounding board can help take some of the emotion out of the investment and gets me back to the big picture.I appreciate our conversations and look forward to continuing to discuss our progress (and potential setbacks) along the way.

I love researching good companies with good growth prospects and a long horizon to allow for compounding of value, much like finding a good property in a good area with good long term demographics in a friendly regulatory environment etc to allow for capital appreciation. 

Any move is possibly going to have a learning curve and some unexpected setbacks.  

Focus on properties that align with your criteria—whether it's cash flow, equity potential, or location—and stay consistent, even when setbacks occur.

Investors should therefore exercise significant care when choosing their Qualified Intermediary because of the critical role the company will play in the administration of their 1031 Exchange transaction.It is extremely important to note that 1031 Exchange Qualified Intermediaries are generally not required to be licensed, regulated, audited or otherwise monitored by any regulatory body.