I would let them know you are looking for a referral of a solid tax practitioner that handles US Canada Cross Border specifically for smaller real estate investors. 

Yes it was difficult getting through the process, and we trusted our real estate agent to send current photos of the property, but we were still gambling.

Specifically looking at whether my plan should be to hold this rental for the long-term and eventually do a 1031 exchange once its fully depreciated or sell it within the next two years to take advantage of the tax-free capital gains.Details:Location/description: North Seattle 1400 sq foot 3br/2ba 3 story townhome built in 2009, rough neighborhood on the border of a good one to the south.Address: 1238 n northgate way seattle, wa 98133Purchased as primary residence in 2014 for $360k with $72k down, $65/mo HOA which covers landscaping and governanceIn 2016 after meeting 2yr occupancy req., property appraised for $475k so we pulled 70k our by refinancing into a 30yr @3.75% with a principal+interest payment of $1600 + 300 for taxes and insurance and rented it out for $2500/mo, renter pays utilities, we manage the property, new loan amt is $340k.Other identical townhomes in our development and others like it have sold for $600k, so I would say that I could conceivably sell the home once the current lease is up and walk away with $200k factoring in all selling costs.I expect that we will be able to raise rent to 2700-2900 in the next 2 years or so and possibly up to 3200 in 2021 as there is a light rail being constructed that will drive a lot of demand from people commuting to downtown seattle.Specific Questions:Since I refinanced and took my initial investment out of the property, this seems to skew all of the standard evaluation metrics (IRR, Cap Rate, etc...), if I factor equity into the equations this looks like a terrible return and if I don't its a great return. 

Some RE markets are driven by American expats in the coasts and the border (Baja California, Puerto Vallarta, Manzanillo, Mérida, Cancun) and Lake Chapala, San Miguel de Allende and other hotspots for US baby boomers retiring in Mexico, and Mexican-Americans moving to México, all prices traded in US dollars.The economy of some Mexican States is booming and the real estate prices are ridiculously low with high potential for appreciation.

I live on the border.  

Yes, they do - but that knowledge doesn't exist only within the state's borders.  

Who knows but unless you have a solid exit strategy, it's still a huge gamble where you wont' know whether it was worth it or not until its over.

@Scott E.I live in South Texas right by the border and many towns in my region are growing and rents are increasing with every year that passes by.

This is a particularly strong issue in border areas right near a state line.

The problem is that I found out from the plat map that on the .27 acre lot, there is a drive way encroach on one side and there is a corner of a townhome complex encroaching on the other border.