And even if the cap rate increases again, I am OK because the 42-unit building I am buying will produce a lot of cash every month (in fact just the cashflow increase alone is over $75K/yr).2.

My investments will produce enough passive income by that point that the $500K is not needed.

Or add some extra for a cushion.Personally, I would buy properties all day long for $80k if they produce $950 per month rent and I can increase the rents by 5% per year.

have your wife be a top producing retail realtor and your troubles are over.. 

I am in the Cleveland are, and I am trying to find some new innovative strategies to test out.

That will force her to pony up the proof.And if she does produces something, verify.

You will have people checking in and out, you will produce more in a short period of time.

They usually can produce trend reports, give you a run down on the competition, what areas are good and what areas are bad.

In many cases these investments will consume more in required capex, than they will produce in cash flow.

That makes it not real estate so no 1031.If your tax bill is going to be large then 1031 but into a passive cash flow producing asset.