This is to partly offset the increasing cost of property taxes, insurance, heating oil, maintenance costs, etc.

Landlords making lemonade out of lemons sometimes is just part of the business.   

Just FYI the properties I'm talking about will be in the shale oil field boom areas that are just getting ready to start up.

HiWhat would be a good estimate to remove an in ground oil tank and replace it with gas?

Like-Kind Real Property  The following list of real property asset classes represents interests in real property that usually qualify as like-kind property for 1031 Like-Kind Exchange purposes: Single Family Residential Property Multi-Family Property (Apartments) Commercial Office Properties Retail Shopping Properties Industrial Warehouse Properties Triple Net Lease (Net Lease or NNN) Investment PropertiesAgricultural (Farm) Properties Vacant Undeveloped Land Oil & Gas InterestsMineral RightsWater RightsAir Rights Easements in perpetuityLeases with a remaining life, including options, of 30 years or more Tenant-In-Common "TIC" Investment Property InterestsDelaware Statutory Trusts "DSTs" Investment Property Interests Vacation rental properties (income producing)

As such, I'm having to make offers even before my local agent has seen the property.Do veteran buyers write in anything special to your purchase agreements to give you an out if the place is a lemon?

I get it when some companies do it for a few months but these guys were giving 24 month gurantees.. well with the assets being the dogs of the city.. and the HUGE mark ups they were making since the buyers were using cash and sidras no financing.. it lasted for a few years before it started to leak oil.. then robbing peter to pay paul .. then they came out with a note investment model..

Converting it to oil heat is out of the question due to the cost of it. 

Syndications and/or passive investments that generally qualify are often structured as one of the following: Sponsored (syndicated) Tenant-In-Common (TIC) Investment Properties Sponsored (syndicated) Delaware Statutory Trust (DST) Investment Properties Certain sponsored (syndicated) oil and gas interests/rightsSponsored (syndicated) Net Lease Properties (NNN) often through a DST Non-sponsored (syndicated) Net Lease Properties (NNN) acquired through a real estate broker There are brokers that specialize in syndicated TICs and DSTs. 

There are lots of potential replacement property options inside of a 1031 -- including multifamily, commercial, land, oil & gas rights, etc.