The critical issue is that you must have the intent to hold for rental, investment or business use in order to qualify for 1031 Exchange treatment. 

Critical thinking skill set.  

Like others have shared, a few critical steps on the front end:1.

Nothing is more critical to buying first rental property assets than their location.

The timing of notices is critical.

If the comps are dissimilar to the subject, it may get denied.

That's the most critical thing to look for when buying a rental property.

I'm sick of people crying and screaming about some issue but they never have any productive solutions .... just complaints and criticism of how others handle thingsThis minor restriction in who you can run a background check is just that.... minor ..... way overblown on the impact if you actually read the law rather then the headlines.

@Scott Dongjin LeeI will not critic your plan... seems solid.

I know a company (insured by Lloyds of London) that will cover lost rent but I don't know of any that cover intentional damage by the tenant.This is why it's critical to learn how to screen applicants and to build policies and procedures that nip problems in the bud quickly.