However; the appreication far outpaced gains others investing in areas for cash flow were going. 

If you are shy and reserved then perhaps being a "passive" investor is better for you.

Your best bet is to first gain an understanding of the market by taking a sample set of similar properties and determining how the different features impacted the overall value of each property.

Hopefully I could then partner with them on a deal once I have gained enough "know how" and they trust me enough to let me take over the operations of a deal.

., it is not your career), the federal government places a limitation on how much of your passive loss from an investment on something such as real estate can be deducted against your ordinary income.

Which strategy is better for gaining experience in RE investing?

Yeah, you have to do some serious legwork, but finding a trustworthy provider that will keep consistent, reliable, passive income flowing your way will be more than worth the effort.Best of luck!

How much gain was deferred in the 1031 exchange?

It seems like a pretty smart way to get one's foot in the REI door, gain some property management experiences, build equity and get solid financing.  

I have no clue as to how good it is or is not or how much it may cost.although I have been around a lot of different HOW TO guys over the years.. and like anything.. if he sells 100 people on the big dog program 10 or so will take it and run.. 10 or so will muddle the rest will just kind of fade away.you have to look within and see if you are in a position to succeed in real estate... its not as easy as just taking a course and your now going to succeed... real estate generally speaking takes time,, money and some how gain experience. so for sure those that have limited investing capital limited experience.. no real contacts in the industry.. will find it pretty tough to almost no way anything will happen other than get jacked up at the event.Assess were your at personally..