We'd have to know Fred's experience to help him identify that.

Since you haven't identified another property to invest in, I would look at the returns you're getting and compare them to the expectation for the next property.

Hi All,I am trying to identify markets where there currently is a shortage in rental apartments, what would be a good source to find that data?

Only property you purchase with the intent to hold for productive use qualifies.But as you identified, even if this really was a property you intended to hold and not a true flip you cannot DIY a 1031. 

With a 1031 - after the sale of the apartment - your dad has 45 days to identify a property and 180 days to close. 

Furthermore, how do I identify wether a neighborhood has those factors?

When I send a letter saying, “Hello XXx, I am a local investment real estate broker and have a client who has identified your property at XXxXxX as of interest.

Hello All,I am hopefully moving to Pensacola months from now and wanted to begin the process of identifying real estate to “house hack” in order to pocket my BAH and use those savings to invest in a down payment on a fixer upper home to BRRRR.

Ask the nephew if he could sign a notarized statement that tells of the father passing, never married, only the identified children by name and date of birth/death (for those deceased), and the names, date of birth/death (if any are deceased) for the children of the deceased siblings. 

You have 45 days from the closing of the sale of a property in a 1031 to identify potential replacements and a total of 180 days to close.