The last sections of Pasadena where you used to get "cheaper" homes at North West Pasadena (between Washington and Woodbury and Fairoaks and Lincoln) were homes used to be under $700k are now going for $900k as fixers and over a million when renovated or addition of sq ft!!

Additionally, consider the long-term prospects and market demand in your area to ensure the investment aligns with your financial goals and risk tolerance.

In addition, being local would help me get my bearing the the real estate world.

Additionally, this structure eliminates the need for active management, as the real estate assets within the DST are managed by the sponsoring entity.As an investor your level of activity would include collecting monthly distributions, receive quarterly reports on investment, file taxes annually and exchange DST year 7-10 years (sometimes shorter depending on the market).

My 1031 proceeds are half equity and half debt and I can not fund the debt component with any additional personal funds.  

I recommend sending a text stating that you're glad to have them as tenants, you look forward to meeting the new addition to their family due in just a few short months, that you appreciate knowing that the stairwell doors have been slamming close and that you will place a note on the door to ask that the doors be hand closed to help reduce that noise.

You have LLC fees, additional tax filings to have it be a pass through entity and all for what?

Instead, you might ask a portfolio lender if they'd forego the down payment if you give them a second lien position on the other property as additional collateral.

My deposit varies by size of the property but generally I’m charging 25-30% of the rental rate as the security deposit and I charge an additional refundable deposit for pets on top of an additional cleaning fee. 

This is great news to hear about the additional new two distinct experiences!