I'm making the assumption that your looking @ this property as an investment & not something to live in.  

I don't see MKE as "cookie cutter" (usually=north side is simply a big cesspool of violence, drugs and despair, suburban counties are "picture perfect" on the surface but dig deeper and its just a modern day Klan clown rally, BOTH assumptions are trash) I see MKE as a very diverse area where, if you find the right people to do business with, background and ethnicity is not a factor here, simply whether people are decent people or not, you can succeed here.

@Keith LewisFirst, that was me pontificating in a response to Sam.Second, flooring rep or not, the condescending attitude should be put back into your pocket, it's not helpful.You appear to have made an assumption that my reference to poor quality vinyl was to a reference to "luxury vinyl" when it was not.  

The total will be $55,000 in taxes.So, if I don't do a Section 1031 Exchange, I will walk away from the closing table with $345,000.But, if I do a Section 1031 Exchange, I am required to put all of my $400,000 net sales proceeds into the purchase of a Replacement Property, say a Fourplex, and I walk away with no money, but with title to a Fourplex.But you are saying that I can arrange to borrow $400,000 with the Fourplex as security, a cash-out refinance, schedule it back-to-back with the first transaction, and walk away from the table with both my $400,000 net sales proceeds from the sale of the Relinquished Property back in my pocket, and title to the Replacement Property, the Fourplex.The Replacement Property contains none of my $140,000 transferred basis from the Relinquished Property, and none of my $200,000 deferred capital gains on the sale of the Relinquished Property, and none of the $60,000 unrecaptured depreciation from the Relinquished Property, all of which make up the very foundation of the Section 1031 Like Kind Exchange statute.Treasury Regulations Section 1.1002-1(c) concerning Sales and Exchanges, referring to Section 1031, says "The underlying assumption ... is that the new property is substantially a continuation of the old investment unliquidated."

Current assumption is that I won't need PM.

@Max JamesI steer away from assumptions and do my best to determine actuals.

I see you are from Madison and said you are buying in a college area, so this also goes under the assumption that your house is zoned properly and can have 3-5 (unrelated?)

Given that assumption you're at roughly $115 per unit of positive cash flow which is pretty darn good!  

I question the basic assumption that large projects are a profitable as small.  

I am really using assumptions about the deal which is not cool.