The challenge comes in the case of a 1031 exchange when you only have 45 days to identify a replacement property and 6 months to close. 

@Irving Garcia, I also live in San Diego and love to brainstorm and seek opportunity for a ground up new construction, which is fiercely competitive now days and challenging with an uptick in material cost and scarcity, but a firm believer of old saying “there is way when there is a Will”,,,, I knew of an opportunity in Old Del Mar, just the beginning of the year, that a house with 1,100 SF’ building on an approximately 9,000 SF’ land sold for $2.375m that after demolishing the building could build up to 4,000 SF’ and and potentially sell for $1800 per SF,, although very lengthy and challenging project going through city and coastal permits but at the end leaves respectable margins!

The biggest challenge is finding the right property management company to help you and stay on top of the things to get the best reviews for your property.

The key would be to get in and get out quickly (within 3-6 months) but (always a but) it is challenging right now to get qualified contractors who can start asap on a project.

We would like to know if you would recommend that we challenge the lien based on the following.

Plus, we get to take advantage of the ridiculously hot market with our sale without having to turn around and buy at an inflated price.The rehab is going to be a challenge, but I am wholeheartedly looking forward to it. 

I know a few people who are doing this successfully, but it does have challenges as some others have pointed out.

Don't keep searching for a million ways to finance a deal, instead use that energy to start tackling the challenging of getting the funds.

Definitely some different challenges but I’m hoping to jump in soon! 

I know some investors in California or Washington deal with similar challenges, but they are investing in high appreciation markets, so there is upside incentive to deal with the challenges.