Hey Dave, since I have mortgages on these properties, would it make sense to bring cash to the exchange to cover the mortgage amount (or pay off the mortgage before doing the 1031) and improve the cash flow for the newly acquired property?

I am not going to do any improvements to the land, just improvements on paper etc.

Learning from this data, negative MoM real estate private investment occurred for FOUR QUARTERS dating from Q3 2008 , it's all negative until Q4 2009.In this 2022/2023 downturn cycle, we started the negative performance on CRE on the 4th quarter, so if cycle repeats the same, at very least we have to wait for another two quarter data to see the improvement if any.Learning from 2008 experience, the CRE is stabilizing only *after* Fed reduced the FFR, I dont think it's a coincidence that bond market started expecting Fed to decrease rate by April 2024 next year.

There's nothing left to cover expenses so you better have deep pockets to cover maintenance, admin, turns, etc.If you think you can quickly improve rents to a point that covers your expenses and pads your pocket a bit, then maybe, IF it hits your return threshold.If you're buying cash, then the mortgage is not a factor. 

The IRS has said, since 2017, that the improvement ratio or $ value is what your taxes are assessed as, unless you have a really compelling reason to use a different value. 

As insurance woes grow over the next couple of years, I dont see this improving. 

FHA loans with low down payments are ideal for this.In the meantime, focus on improving your credit score and maintaining a solid financial foundation.

@Philip Jones we've helped our clients do over a hundred.As some of the lenders posting have pointed out, the challenges are:1) Property value and corresponding loan size2) Appraisals have much better comparables than 5 years ago, but may still be an issue.3) Property condition can be an issue via the appraisal4) Ownership seasoning - most lenders looking for 6+ months or incredible documentation for cost of improvements made.5) Most DSR lenders require professional property management.Always try a small local bank or credit union, but most will expect you to transfer your business bank accounts over to them. 

Since I enjoy the management and improvements and tools and growing a business, I chose to acquire my own properties.As for whether syndication is the "best way" ... it's totally whether the syndicator is good or not. 

I will offer this suggestion, If you can secure long-term tenants post-leaseback and consider future value-add improvements, the property could yield even greater returns.Also, keep a close eye on commercial real estate trends in Middle Tennessee, especially given the area’s growth.