In fact any gain is not recognized when doing a 1031 exchange whether capital or ordinary. 

if a land trust is setup up for a out of state is it recognized in CA (where I live).

It is clear from your post that you recognize that you're receiving interest (e.g., $100 interest as part of the first monthly payment). 

Unlike traditional vacancy rates (or the converse occupancy rates), the PRA recognizes that there are differences in rental prices between apartments, meaning, a vacancy for a unit with a monthly rent of $1,000 is not the same as one with a monthly rent of $2,000.

Recognize that and maybe you will have better success getting a good contractor.

So can we make a computer win a video game, chess, jeopardy, recognize a face, and drive a car?

But in CA someone recognized a veritable gold mine in an aging population with tons of equity and tied it indiscriminately to another truly needy group that lost their homes.  

On top of that, most lenders I've talked too do not recognize short term rentals as investments. 

Being new, your goal should trying to figure out how to recognize an opportunity worth pursuing in 30 seconds and analyze a deal in under 5-10 minutes. 

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.