"the typical home warranty costs $450 annually, and only 25% of premiums are paid to homeowners.

That's not the same as paying cash.According to a different post, your credit card debt costs you $600/month.

It did not cost me $0.01.  

If you paid $950k and only get $1M after selling costs, don’t bother with the 1031.

One of the things I'm trying to figure out is if I'm better off getting a few lower cost properties or on higher priced property. 

It doesn’t cost you anything and gives the tenant time to rearrange their entire life around your decision. 

I decided to buy the property from my grandfather using a gift of equity, which allowed me to take over ownership without having to come up with the full down payment and pay for the tax lien and his closing costs.

The market between the 2 locations & resident class (Especially if you plan to self mange or find a PM company), Your future goals and the costs associated with moving and transferring to a new hospital. 

We cap the rate for utilities and actually added about 10% above our normal average this past year due to rising utility costs in our area for gas and propane.  

With that, you could cover the costs for renovations, closing costs, or even set up escrow for those senior living sponsorships.