I understand that real estate investing often requires active management and effort, especially in the beginning. 

They are also hard on your properties and require extensive repairs.

We learned early on that:-3 of the 6 buildings are in a flood zone-the current owner has a loan, this lender doesn't require flood insurance-1 building took on a little water at one point during the 12 years the seller has owned the complex. 

I have heard that Flagstaff has specific regulations for STRs, including licensing and permit requirements.

If you are scared of losing everything and that everything is the 16k entry plus closing costs, it's not worth it on subject-to which has to be done correct and requires a lot of management to make sure their loan does not get called.

2) Our lender does not require a Phase 1 assessment.

Manager said when they replace unit they replace flue because shape on new ones is different and/or Dept of Bldg and Safety require it.  

There are specific requirements that need to be met for a 1031 exchange, so here’s the IRS fact sheet for further detail.

Create a simple spreadsheet or written list to compare the features of each and identify the ones that align with your requirements.

It requires some capital to invest, making smart decisions, and being patient.