Isn't there a long list of items that have to be considered before it can be deemed available for a 1031 exchange?

@Paul WinkaPaul, There are two items I hate, refinishing floors and sheetrock.

Water heater, roof, etc. so I would look at the condition of these big ticket items and estimate how much life you have left out of each of these.

Problem with that rule is that the property maybe so undesirable (for many reasons, not just aesthetic) that you couldn't give the property away even if  you yourself inherited it.

Let's say the loan payment is $500 - that new line item will lower your approval by $100k

Here are the numbers for this project:Purchase Price: $140,999Purchase closing costs: $1,706Materials and Labor: $31,822Holding Costs: $9,019 (includes repayment to investor)Final Sales Price: $220,000Closing Costs, Commissions, and Staging: $14,667Total Profit: $21,788Here are some before and after pictures:Fireplace before/after:Kitchen before/after:These are the major items we replaced/redid on this house: converted the carport into an additional one car garage (not as hard as I thought it’d be), carpet, updated fireplace, paint, updated lighting, appliances, laminate, granite countertops (also added a little shelf to the counter so you sit at a stool to eat), backsplash, painted cabinets, new furnace, new windows, and removed 3 dead trees from the yard.

As for private lending, you always need these items: Promissory Note signed and notarized, Joint Venture Agreement, and a Deed of Trust or also known as a Notice of Interest in some states that references the Promissory Note and JV Agreement.

There are also lots of aesthetic advantages of in-floor heat, and you may be able to charge a premium rent for in-floor heat.   

My general rule of thumb (and obviously I'm focused on "what will screw with you getting a mortgage," so if that's not you, feel free to disregard) is that if your taxes are simple enough to use 1040ez, you're salaried W2, and you're taking the standard deduction rather than itemizing, go for it with the software. 

Your landlord must be a rookie, a good landlord will fix those items for several reasons, but most important, to take care of their unit and keep the tenant happy so that they will not know.