Value increasing is good for investors...that's the objective here. 

It sounds like you have a big heart with your real estate objectives as well as your concern to be mindful of the time of others.

Hi everyone I recently sold my 3 multifamily properties in San Diego CA -With the objective of doing a 1031 exchange; however there were some issues along the process that ended up taking more time than planned.

Make a closing list.Determine your financial and personal objectives ahead of time. 

When I think about it: If it is not sold and pitched agressivley, it does not stand up to other shiny objects!

My investing strategy is to purchase a 4 - plex (HH) next year and then maybe another HH after that as my goal is financial freedom in 3 years and I believe that should get me there (cover all expenses, not necessarily quit my job freedom yet) then start moving into buying smaller multi family properties (thinking 16 - 30 units) once I gain basic principles and experience.

Due diligence is a foundation principle when making an out of state purchase. 

How about you get your principle back with interest.

@Scott Diller If your end goal is to use the cash for another property I wouldn't pay it into your principle. 

Whether a trade or business is regularly carried on is determined in light of the underlying objective to reach activities competitive with taxable businesses.