I suggest you check out the Free Ultimate Guide to real estate investing under the learn tab above.Also a profile picture is a good idea.

Your right it should have nothing to do with the 1031 but it it goes on the hud it is messy and easier for the service to claim you are receiving boot  A simple statement to that effect can go into the contract and the title company may even be willing to handle that part for you.Re: the excess funds- depending on valuations and any work needed on your replacement properties there may be a way to enfold that into improvements to tour replacements and still keep tax deferred status of that money

If you are a buy and hold type you will find many opportunities available; perform your due diligence as many houses require more construction efforts or cosmetic improvement than others.Hope this helps.  

Be sure you have an ownership interest (land contract or contract for deed) instead of a leasehold interest (lease with option to buy) before you put a significant amount of your funds into improving the property.    

Real estate has improved considerably from its darkest period of 2008/09 and likewise so has the work contractors find.

Please tear this idea apart and let me know what can be improved.

They all have equity and all are considered fixer upper/opportunities to me where I can improve the value. 

With a conventional loan I was planning on financing the purchase and using cash to finance the improvements.

Getting a property zoned for a higher and better use is a huge improvement, they may have 2k in a lot that sells for 30 or 40K.   

I guess I figured I'm just learning, so any time I put in is important to help me improve, but that may not be the case in the future.Thanks!