However, I enjoy a fun challenge.

You have have cited a few challenges but what you need to do is set a plan in place to overcome them.

The opportunities for education and improvement are literally never-ending, with constant opportunity for challenge and triumph.

And your lack of transportation will make both finding and managing this property a real challenge.

During the conference call each member has 15 minutes to go over their goals and report to the group their successes, challenges and ask for suggestions.

I know (or maybe I have no idea) a 4-unit building will be a challenge but at this point it seems like a solid move.

The definition I am told by 1031 exchange companies is that the IRS views anything less than a year as holding for resale purposes and not for investment purposes.So the 1031 companies recommend at least a year unless you want a lengthy fight with the IRS based on cases they have seen come up challenging the 1031.This is why I didn't know if the time had to be continuos or not.I am going to call some 1031 exchange companies today to get another set of eyes on it.Thanks for all the help.

I thought the challenge would be to predict the resale value, but it seems that repair costs are the biggest question mark for me.Would any of you seasoned pros be wiilling give me some average PPSF numbers for rehab projects.

It sounds like your local market is not good so managing or buying in another area can present challenges and complexities as well.

I'd bet the "They bought the call option that is now worthless" and "Too freaking bad" approaches taken by investors engaging in deals like this is why that law exists.I'd bet if you said to these buyers "you bought a call option that's now worthless" that they would look at you with the deer in the headlights look.Having said all of that you likely shouldn't have sold them an option to start with because the investment is not suitable for unsophisticated buyers.