It’s a bit complex, so working with a 1031 exchange expert and a tax advisor is crucial to make sure everything is done correctly.

For that they are usually getting tax prep and filing and advisory / planning services.

If insurance doesn't cover the settlement and an additional million is needed, I'll be responsible for $10,000 (1% ownership).I've been on these boards for nearly 15 years and nobody can provide an example of a landlord being sued for so much that they lost their investment and impacted their personal finances.

Look around these boards-- frauds popping up daily, misleading advertisements, posts about acquiring X amount of houses at Y cap rates only to be truly just wholesaling them, columbus cartel swarming, etc.

Instead of ceramic tile on the shower walls, I had left over cement board siding from a previous job..

In fact, across the board, out of town investors are buying at *negative returns* which is making it absolutely impossible for savvy, educated investors to even get their foots in the door.

You are essentially at the mercy of the HOA board.

I'll break it out for you.Gross Salary: $80,000/yearGross Salary per month: $6,667/monthAfter Tax Salary per month (not including 401k investing (which you should be doing, but I get this is a real estate message board and this concept is not popular): $5,434Purchase Price: $600,000Interest Rate per Calculator: 6.941%Downpayment: 5% or $30,000Financed Amount: $570,000Mortgage: $3,769.67Property Tax: $600Insurance: $125Other Costs (per calculator): $333.33Total Monthly Payment: $4,828/monthAfter Tax Salary - Your New Homes Cost = $5,434 - $4,828 = $606CONGRATULATIONS, you are what is referred to as "house poor." 

I was on the HOA board of a luxury building in San Francisco and you would be surprised at how many people will let their dogs pop and pee in the common areas (killing very expensive plantings).

I board up or brick in fireplaces and tampering with this would be grounds for eviction.