Perhaps I could buy just a single property within the next year with a cash down payment first just to test the waters, and if the experience agrees with me, I could pursue more with the 1031.

Therefore, if they have a water bill outstanding (not paid yet) their rent money will be applied to the Water Bill, which will make their rent payment short, which will cause a Notice to Quit for non payment of rent to be sent.  

I'm going to try and talk reason to the tenants and get them to move out peacefully.During their occupation of my property, there was severe water damage to the upstairs kitchen and downstairs bedroom.

These are great when you want to keep a hot water/radiator heat system, not run ducts, and get your A/C.

Minor repairs definitely do bite into the bottom line but it is a slightly positive cash flow.I just am tired of treading water - I am not building equity, I am still underwater when I look at comps in the area (I think the place is conservatively worth 350K).I am not real-estate saavy enough to know what my options are.(1) I dont think I can refi cause my LTV is horrible.(2) I cant sell without paying out of pocket(3) I cant short saleAny ideas for an exit strategy?  

re taxes $17818 / insurance $1522 / water $ 3987 !!

The "smoke" you see us exhale is water vapor - and its not even from the liquid in the tube - it is moisture drawn from the air by a piece inside called an atomizer.

The problem exists now that there are no gutters, and water just puddles around the foundation of the house.

This home is over 3 years in arrears, and it's over $100K under water....don't think it's a candidate for this idea.  

Unfortunately, the area that we hope to call home is currently flooded with investors and cash and our strong conventional offer cannot compete with cash offers that have no contingencies.