Additional info:primary 1031 exchange rules and requirements include: 1) same taxpayer: the taxpayer who sells is the taxpayer who buys, 2) property identification within 45 calendar days post closing of the first property, 3) purchase of the replacement property within 180 calendar days, 4) trading up: the price of the replacement property is equal to or greater than the old or relinquished property, 5) hold time supports the intent to hold for investment, and 6) related party transaction regulations. 

Sell the improved tract with the one legal description and keep the other.

I feel this is my weakest point of analyzing deals and would like to improve in this area.

(I'm also very familiar with rent stabilization laws since I work in housing policy for my career, so I'm aware of how that offsets a lot of upside potential, at least in the short term.)Is this "Sub-1% Rule" just something you need to accept as a buyer/investor in LA?

Hi Daniel, I would ask if they have completed a reserve study, when the last time was that they passed a special assessment and what it was for, if they have any upcoming capital improvement projects coming up, when the roofs were replaced, when the last time they painted (because if not in the past 8-10 years you may have a lot of leaks).  

Without being a cash buyer and the market being crazy makes the 70% rule seem almost impossible.

It's done all the time you need to know the lending rules for your state.  

The general rule is that a veteran may have only one outstanding VA loan at a time.   

If I am buying and holding, why don't I just find a good realtor who can find properties that need some improvement and rent them out?

You'll either want to create a partnership agreement or form an LLC and create an operating agreement, which will incapsulate both of your rules, responsibilities, rights and terms of the agreement.