The reasoning, as I remember, was some combination of 1031 exchange, increasing ROE, and leverage.Does anyone have a good resource or explanation summarizing the logic?

My plan was to put down 35% while she would cover the remaining 65%.However, the seller has requested to be in escrow for 45-60 days so that he can complete a 1031 exchange and use the proceeds to buy another house within that period.

But I could also 1031 exchange it later, if I choose to sell after that time.

If you can capitalize on those early returns and recycle into another property with similar early trajectory, you will end with much more money over the same period of time.Of course, being able to harvest those gains and recycle in a tax deferred manner helps even more, so you may want to seek out syndicators that are able to offer 1031 exchanges on exit, which is definitely possible.

The market I exchange into will be heavily weighted towards an awesome PM, then the economic and demographic metrics of the area.  

This will correct over time as more get burned, but until then, spend responsibly. 2) Do not listen to any advice recommending that you enter into a THIRTY YEAR agreement with a bank where you pay them a monthly payment in exchange for primary residence shelter where the only way you can meet the obligations for such a contract over the lifetime of such contract is that you househack, renting out your bedrooms to likely...strangers...until you are dang near Medicare eligible.

Banks and credit unions can also offer flexibility for investors that engage in strong relationship-building strategies, offering discounts and solid loans in exchange for borrowers willing to use the institution for other purposes (savings accounts, etc.).

See if you can find someone interested in letting you work for them in exchange for mentoring.1.

Given the complexity and potential tax-saving opportunities in real estate, it's wise to consider hiring a CPA with expertise in this field.Many clients who work with non-specialists find that their non-real estate preparers lack the specific knowledge to help them minimize taxes through strategies like depreciation, the de minimis safe harbor, partial asset dispositions, 1031 exchanges, navigating real estate professional status, the short-term rental loophole, and more.If you are looking to qualify as a real estate professional, use the short-term rental strategy, or complete a 1031 exchange, I would without a doubt recommend working with a real estate CPA.

In your case you could take the first 25% of the gain up to $250k tax free with the 121 exclusion, and qualify for a 1031 exchange since it is also used for investment use.