So if your big into water sports, living in the desert could have all the profit in the world but it's going to be miserable hell and odd's are after some months the profits wont matter.

How active are you wanting to be in the deal?

My other project years back was searching for active businesses to buy, at one time laundromats, many located downstairs in mixed use properties. 

Quote from @Robert Quiroz: Hello All,I will have around $1M in capital that I'm looking to generate 8-10% CoC returns for the purpose of replacing active income. 

Here in TN brokerages regularly hold EM deposits; I have a dedicated account for such deposits myself, by law, even though I don't actively broker RE but just maintain my brokerage for the PM side of things.

Just create columns for every week and the rows are the activity and color code them in logical order.

I am hesitant because the first property is located where all the Olympics and World Cup activity will be in the coming years and the interest rate is so fantastic.

I’ve heard about home equity loans and HELOCs, but I want to keep my money in the stock market to maintain some diversification.My question is: would it be wise to take out a home equity loan for the full $200k to keep my stock investments active?

You can use the 1031 to sell a larger unit that provides better cash flow while minimizing active management.You can either try to cluster those sales together so they close in a way that lets your replacement property be listed on each 45 day period and you close on it within 180 days of the first sale (the first exchange that will expire).Or you could do something like a reverse exchange where your Qi purchases the new property and holds it for you for up to 180 days while you sell all of your properties. 

You get to make offers on your own and potentially save on buyer's commission.I wouldn't recommend if you already have an active income that is serving you well because it would be better to invest time in that endeavor if that's the case.