You should work with a Qualified Intermediary that is going to focus on administering the 1031 Exchange and not trying to get paid on the back end. 

Hi Natalie, MTR's do seem to be struggling if that is the only focus for a property.

Prices remain relatively low, but appreciation may be slower.Monroe: A mix of cash flow and appreciation potential, Monroe has become a popular choice for investors, especially in areas where new developments are popping up.Appreciation-Focused NeighborhoodsBallantyne: A well-established area with high demand, Ballantyne offers excellent long-term appreciation potential, though cash flow opportunities may be limited.South End: A booming urban hub with a vibrant retail and restaurant scene.

Are you focusing on adding them in the general PHX area? 

Even if cashflow isn't your focus, I would caution against a truly cashflow negative local property, where you're also not factoring in the cost of maintenance. 

Alternative Lenders – Look for private lenders or debt funds that focus on asset-based lending rather than borrower experience.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Where we fit into the "turnkey" model is that our marketplace specifically focuses on newly built properties or renovated homes in good markets with property management in place so you are not having to try to self manage from a distance or build a team on your own.

Don’t focus on buying or selling right away—just connect and build trust.Both brokers and sellers prefer doing business with those they know and trust.

I would focus my attentions here and try to stay local (within a 4 hour drive) as the POH rentals require more engagement.Financing is a tough deal... but sometimes you can find those Mom and Pop operations with quite a few POH rentals that will work with seller financing on a reasonable interest rate with a balloon within 5-7 years.