My point being that should someone's numbers be close enough to warrant digging deeper, these numbers LOOK LIKE they will be very close to the real deal.

In addition, this sounds this would be “trading down” instead of “up” – again, I’m not a 1031 expert, so this part may or may not warrant some additional research.

BP,Does anyone have experience buying an non-warrantable condo as a buy and hold investment? 

If the condition of the property warrants it, raise the rent to market rates once the existing leases are up.

Worst Case: You may be stuck with 12-24 months of cash tied up until you can prove the appraiser's numbers were off and a new appraisal is warranted. 

This is the first year that I will be making decent income to warrant the schedule SE. 

If I find an opportunity that warrants a early withdrawal, I will not hesitate.  

I am currently looking at properties in Montgomery and Indianapolis (I live in San Diego) where some of the deals fit the 1% rule at first glance which warrants deeper analysis but this is where I get hung up... 

COC 1.28% and then COC after tax: 3.2%. this is a single family home, and even though knowing the cap rate is kinda cool, its a residential home and the value is based on fair market AKA appraisal so cap rate is not warranted. 

I doubt the county would be willing to warrant title.