Today, however, this deal would be a slam dunk in this market, as I am finding it harder (if not impossible) to find 2% deals in central Pennsylvania.  

I want to buy & hold appreciating properties in neighborhoods where I can find decent tenants.

My bookings usually come in 3-6 weeks ahead of time, which is great as it helps me to plan ahead and is further validation that I'm providing a place of value to people.

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

Or does the owner have to find a way to acquire tenants?

If the tenant was to leave they have two month penalty as part of the early termination, but it is hard to find a tenant after October until March as people move during the spring and summer time.

I find myself surprised at times  

What methods are you finding most effective, or what are you hoping to try?

You will find tenants MANY times are not the most communicative or helpful sort.

Another positive is that it looks like a lot of the hillside owners have a good amount of equity and it's possible that you might be able to find a good off market deal on one of them.