If done incorrectly, the quit-claim could trigger a "due on-sale" clause and cause your mortgage payment to be due in full immediately. 

DC is relatively stable in downturns as well, to date, but the prices are significantly higher here which is a barrier to entry to some.For your second question, I'd say getting/having solid relationships in the area before you pull the trigger on something is the best hedge against risk in investing out of state. 

It shouldn't . . . the guidelines for whether a sale is reported to the IRS at closings (which follows the main Tax Triggers) doesn't ask anything about financing or refinancing at all. 

Written correspondence with your professionals indicating your intent would be good as well.At the end of the day you'll have to decide if you feel like you have had legitimate intent.  1031s are not an audit trigger. 

So, if the properties are owned by an LLC, would that be what triggers the UBIT in the case of a solo 401k?

Converting a property from investment to primary use does not trigger a tax. 

You trigger a thought.

A similar ROI is what I would make my deciding factor by the time I'm back and can pull the trigger on the deal. 

If you find a great deal, and you qualify for it, then pull that trigger!

Now, the 2017 tax law did trigger this shift for my situation, but just curious to know about others.Additionally, as I add a third property I believe I am ready for more professional tax assistance.