I presume this means that although interest continues to be incurred, the interest is not capitalized to create a new, larger interest-bearing balance?

I'll stand corrected here, we don't have interest bearing deposit accounts.  

Also bear in mind that while getting 1% or more in rents is great, it doesn't much matter if expenses and taxes eat it all up - so keep the focus on net numbers (cash flow, ROI, ROIE).I think you're definitely on the right track with regard to the 1031, but remember that you'll need to adhere to the 45/180 timelines, so make sure you scout replacement props long before you go to market - 45 days isn't long in RE.

I know you can't in PDX.... but be careful of chasing yield all over the country.. many high yield MF type props can be a bear to manage to the point of losing you $@@ if your not carefulyou may want to look at Wenatchee  @Steve Vaughan is the Wenatchee guru and   you may want to look at Spokane.. probably want to stay in state so no state income tax.

So far our top choices are Big Bear Lake and Lake Arrowhead.Because this will double as a vacation home for us we would be okay with a break even scenario.

Here is hoping the downturn happens soon- but even in Big Bear prices are up $60k on homes that were under $200k a year ago. 

Do bear in mind that the property market evolves so some of the older information and ranty posts (that are more fun to read) found on any sites needs to be checked The prices do vary dependent of the values of both property and rentals in the city.

If yes, then you have to abide by the contract the seller signed with their real estate agent or get them to modify the contract.While the Seller may have to "abide by the contract...signed with their RE agent", in terms of paying or not paying a commission, the rest of the terms that might be shown on MLS (or within the actual Listing Agreement) have no bearing on a Buyer's Offer to Purchase.

Bear mind however that I'm still the chef in the kitchen.If you want to be like me then start small, fail often, learn from your mistakes before taking other people's money.

The size of a dog has very little bearing on damage.