Average home value here is $130-$150k. 

You're busy, "cheap" midwest houses are not what you want, invest in quality product (A/B neighborhoods), this will reduce your risk.

I found 2 multi family properties that I am interested in, located in a small town about 20 minutes outside of the city I work im. average rents in the town are right around 1200/month.

So that *could* change what kind of loan product you need.2.)

On average only 7% actually sell so the chances of you getting a better deal at the sale is pretty rough and its risky.

This is why the DST, TIC or a stand alone NNN property of your own make sense combined with the 1031.And while you're absolutely right to look deep at the actual costs and fees both entering and exiting a DST or a TIC project you can find cost effective quality returns that will rival or beat the stock market average - especially if you factor in tax savings and ongoing depreciation.The age old question on pay the tax now or pay the tax later can best be put into perspective running numbers. 

The average price declined 2.1 percent to $270,303.The HAR sales report indicated a decrease in upper-end sales.Check out the the Center's fourth quarter 2017 housing report for Houston-The Woodlands-Sugar Land for more data. 

The best realtor for small product is Erin Ward with Keller Williams.

If you're only getting 4 or 5% CoC Return on the capital you're investing, you'd be better off investing in the stock market, which I believe has historically returned an average 9 - 9.5% over the past several decades.

You can do this via a RUBS calculation, or take the average for the last year or so & charge per tenant in the building, etc