I've  been Investing in RE for over 35yrs and have legally not payed a dime in taxes and have been audited 7Xs by the IRS...and am undefeated...willing to Share my knowledge....

I am not sure if I should pay off my mortgage of $270,000 at 6.5% or should I do a 1031 exchange and invest in a rental property. 

High paying local jobs.Monthly cash flow: $306 /moIncome:  $2,250 /moExpenses:  $1,943 /moCoC ROI: 2.69%5-year annualized return 4.91%   Mortgage payment $1,394.53Rental income: $2,250/mo Expenses: $1,943Loan detailsTotal cash needed $136,739Purchase price$ 336,990Loan amount $206,990Loan term 30 yearsInterest rate 7.1%Monthly expense breakdownTotal expenses $1,943Mortgage $1,395Taxes $280Insurance $47Variable expenses  $180Fixed expenses $42Monthly Fixed expenses: $42 electricity $0gas $0water & sewer $0hoa fees $42garbage$ 0Other$ 0Monthly Variable expenses $180Vacancy $180Maintenance $0 (new construction)CapEx $0 (new construction)Management fees $0 (self manage)ReturnsNOI$ 20,412CoC ROI 2.69%Pro forma cap 6.06%Purchase cap 6.06% 

I don't want them collecting rent and then driving both checks to the credit union to pay. 

Price materials and labor cost will depend on how large of scope of work but a good company is going to be around 3500 a week plus cost of over head we also pay 30% tax on our income also like you guys but if you anticipate 4 week rehab well be ready for minimum of 14k in labor +14knis low end in my opinion... now I'm currently eating my lunch on a rehab from hell but it's gonna be a work of art from where it came from... this was the worst of the worst in my career water damage to all structural raised the roof on a horrible addition and did it correctly. 

A side benefit is that the applicant pays Zillow not you for the application fee and their application can be reused for 30 days to submit to other landlords.

You live in the home for at least 3 years paying more than if you were renting.  

Although 15 years is an eternity for an investor:)Why'd you pay "market price" if it needs work and under-rented?

The fraudsters use a portion of the money they collect from investors to pay the sellers their commissions.

Those areas near Orlando are pretty saturated with investors in my opinion because people want to be close to Orlando, but pay less.