• ARV compared to asking price - If there‘s a lot of room for appreciation I‘ll look deeper at the deal

It takes longer to rent than a comparable SFH would because it doesn't have a backyard.

Nobody should ever put down so much money prior to any work being done.

You can find sales comps by looking at SOLD rental comparables in your area.

In addition, employer contributions may be withdrawn upon the occurrence of any of the following events:1) The occurrence of a Hardship,2) The attainment of age 59 ½3) The employer contributions being withdrawn have been accumulated in the solo 401k plan for at least 2 years; or4) The participant has participated in the solo 401k plan for at least 5 years.Salary Deferrals(employee contributions): Any employee contribution (including any earnings on such amounts)may not be distributed prior to the solo 401k participant’s severance from employment, death, or disability.

You can also view under contract and sold to compare prices but be sure to check sold date if you do that to make sure they are sold this year if you use them as comparisons. 

@Matt K.You can not compare KC to CA.

Consider contacting him to see what he is up to.Bigger properties lead to:1) Less tenant risk2) Better economies of scale (less cost/unit compared to single family or small multifamily)3) Better returns (see 1 and 2)

A 1031 exchange is not right for everyone, but when comparing the numbers...Option 1: Have a larger asset base to work from and reinvest in income producing properties (via 1031 exchange), orOption 2: selling, paying taxes, and investing in the stock market (which may or may not be paying dividends).An exchange can also be thought of as an interest free loan from the government - you only pay the taxes when you do not reinvest in like-kind real estate.You do make a compassionate argument for your current tenants, and that does not go unnoticed, however as @John Warren pointed out, your return is very small. 

If you really want to pursue this I would attempt to get photos of the unit prior to when that tenant moved in (from the PM or the former owner - or at the very least a checklist the tenant signed noting any damages when they moved in).