Many don't qualify for low down payment/FHA for a variety of reasons, especially the ones sub 200K. 

A 1031 exchange is a great way to indefinitely defer the tax and use it to grow your RE portfolio, and build long term wealth.The most important factor in a 1031 exchange is that your qualified intermediary must be in place prior to the closing of the sale of your old property.

Even if you can raise $10mm, but have a small net worth and liquid cash, you won't qualify with the best deal. 

@Bruce Schussler   I am always suggest my borrowers stop at 60% loan to value when utilizing this strategy.  60% is the loan to value where the loan would qualify for the best possible rate.

It's also worked pretty well if doing STR since you can just qualify with AirDNA projected income, even if you have no STR experience.  

(Because of my podcast, I have access to many of them for one-hour discussions, but I know all of them would give a qualified investor 30 minutes at any time.)

That does not qualify as "managing repairs."

If you are still working there, you can ask the plan administrator if you qualify for an in-service transfer.  

This year is the first year I will qualify as a real estate professional and be able to take some aggressive deductions through things like cost segregation studies.

You Keep The Deposit And If You Want To Do A Buy Out Which Usually Is A Months Rents Or More That Will Give You Some Time To Find Another Qualified Tenant.