Do people want to move there.

Typically the people who arbitrage properties are operating complex's with 10+ units at a time. 

Type doesn't matter.What gets people confused sometimes are the terms "like kind" and "qualified use". 

I only ask, because most people are not sitting on $400k cash (obviously this is just my example) to effectively buy a new house without a mortgage.  

Diversifying your portfolio can reduce risk and potentially increase overall returns.Opportunity Cost-You might miss out on potential opportunities to leverage your equity and acquire more properties, especially in a market where finding cash flowing properties is challenging.Pursue a 1031 ExchangePros:Portfolio Expansion-A 1031 exchange allows you to diversify and increase your investment portfolio by acquiring multiple properties.

Get the people who are potentially making the decision to give you more details and specifically what it would take to get it done.

"Best" means different things to different people and Philly is filled with MANY neighborhoods to choose from.

God bless them, they are often wonderful waiters and hair dressers and service people and . . . .  

But you're missing a key number, how much is the income?   

Crazy idea - How about asking your tax professional instead of a bunch of people on this blog that have no clue about if you qualify for RE professional status?