(And I appreciate Will Fraser's comments -- I use the initial conversation to weed out the "tire kickers". 

Purchase price: $157,500 Cash invested: $6,000 My cash invested is just what I put down to close the deal initially.

I learned that the project is usually going to cost more money and take longer than you initially estimate.

Since each house on this program has to be initially inspected (as well as yearly inspections) it would be beneficial to review the requirements with your particular Housing Authority. 

This could be beneficial if your initial interest is cash flow!

@Jung Kim, I am having a bit of trouble following the logic here, but I there there are some misalignment of analysis.First of all your analysis isn't adding in the $100k initial equity in the deal.  

Actually, I want to clarify my initial post.

We had a lot of documents in our contingencies and heard crickets from the seller initially in getting them.

What would the timing of initiating a 1031 look like? 

I would have the seller initial or sign something acknowledging your disclosure of agent status.