I've  been Investing in RE for over 35yrs and have legally not payed a dime in taxes and have been audited 7Xs by the IRS...and am undefeated...willing to Share my knowledge....

Maybe Elon will build a Chunnel from Austin to the launch site.

I am not sure if I should pay off my mortgage of $270,000 at 6.5% or should I do a 1031 exchange and invest in a rental property. 

So make sure to have those things taken care of.Here's HUD's inspection checklist which would be good to review and keep in mind. https://www.hud.gov/sites/dfiles/OCHCO/documents/52580.PDF 

High paying local jobs.Monthly cash flow: $306 /moIncome:  $2,250 /moExpenses:  $1,943 /moCoC ROI: 2.69%5-year annualized return 4.91%   Mortgage payment $1,394.53Rental income: $2,250/mo Expenses: $1,943Loan detailsTotal cash needed $136,739Purchase price$ 336,990Loan amount $206,990Loan term 30 yearsInterest rate 7.1%Monthly expense breakdownTotal expenses $1,943Mortgage $1,395Taxes $280Insurance $47Variable expenses  $180Fixed expenses $42Monthly Fixed expenses: $42 electricity $0gas $0water & sewer $0hoa fees $42garbage$ 0Other$ 0Monthly Variable expenses $180Vacancy $180Maintenance $0 (new construction)CapEx $0 (new construction)Management fees $0 (self manage)ReturnsNOI$ 20,412CoC ROI 2.69%Pro forma cap 6.06%Purchase cap 6.06% 

Using the next ten years and the snowball method to pay them off.

I don't want them collecting rent and then driving both checks to the credit union to pay. 

Price materials and labor cost will depend on how large of scope of work but a good company is going to be around 3500 a week plus cost of over head we also pay 30% tax on our income also like you guys but if you anticipate 4 week rehab well be ready for minimum of 14k in labor +14knis low end in my opinion... now I'm currently eating my lunch on a rehab from hell but it's gonna be a work of art from where it came from... this was the worst of the worst in my career water damage to all structural raised the roof on a horrible addition and did it correctly. 

Although 15 years is an eternity for an investor:)Why'd you pay "market price" if it needs work and under-rented?

You live in the home for at least 3 years paying more than if you were renting.