The lead came to me from another attorney friend of mine that specializes in Probates.

B) It looks like there are companies who specialize in handling reverse 1031; which state would be better to find someone in for handling this, CA or CO? 

They seem like a good investment until a special assessment comes along, and tries to charge you 10,000 to fix the foundation of the building.

Associations can levy special assessments and have deed restrictions that also interfere with typical note collections and enforcement.  

Definitely check out inventory and DOM, this gives you an idea how fast or slow the market is and help estimate your holding time.Also pay special attention to other flips in the area.

However, there is a "special allowance" that may apply in some circumstances.  

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookYou might consider Niche or Specialized Housing like student housing.

I do lot more rentals than flips and I try to think of my business as an assembly line specially for rentals..A house goes in the system, goes through the process and a rent ready house comes out of the assembly line..

You might consider Niche or Specialized Housing like student housing.

I have two rentals that are "only" getting me 0.7% but, with fellow military officers in them, their families are taking better care of the properties then I would!