Make sure you are accounting for renovated properties as opposed to outdated ones as well.

We have two new construction projects getting ready to break ground, 2 cash out delayed financing loans in process, and almost at the end of our first debt cycle, getting ready to emerge into the next phase of our growth stage.

We couldn’t hold it and decided to start on the renovations early while we waited for the ADU permit.

We plan on taking about 3 months to renovate then I would like to get a mortgage on the property.

The funds must never be in your hands, or the 1031 exchange may be void.Other Potential PitfallsYou are not allowed to use the proceeds from the relinquished property to pay for renovations.

Atleast in my market its usually found on 3/4 units or 2 units that are value add projects.

Negotiating, funding, and doing project management and some of the handyman type work.

It really depends on how much capital you're working with.Chances are, unless you're going out of state and doing some work to force equity, you aren't cash flowing with 20-25% down.That's just not the environment we're in.If you have the capital to buy cash, do some renovation, and then do a cash out refinance, there are options out there. 

If it is under 1% then we use 1.25% in our projections.

Paid for the down and renovations out of my pocket ~57k+130k.