@LaRussa Henderson there is no only 1 metric or criteria which is important.Needs to be a combination of few things, including: Landlord friendliness, job growth, population growth, price to rent ratio, demographics, median income, household income, house prices, crime rates etc etc. 

Unit #1Rental Income: $950.00Mgmt Fee: ($66.50)Electricity: TENANT PAYSUnit #2Rental Income: $675.00Mgmt Fee: ($47.25)Electricity: ($21.72)Combined ExpensesGas: ($70.46)Water: (98.15)Property Tax: (78.42)Insurance: (100.83)Save for Income Tax: ($260.21) [I take the profit up to this point, and multiply it by -.25.

House-hacking doesn't require the same level of red tape and work to turn it into a CPR, although you certainly can combine both strategies, if it can qualify. 

Make sure you send a copy to the IRS and to their state tax department (if the state you are in doesn't participate in the Combined Federal/State Filing Program).

So as far as expenses go, you are saying combine the cap ex + custom expenses = 15 total %?

Even so, over time this will all even out, so you want to slowly increase each year until you hit ~15% combined, that should work.You're missing Management (10%).

In my experience, people with pitbulls ALWAYS have bad credit, criminal records, low income, bad references or a combination of 2 or more of these.

There is a way to combine an owner carry and a 1031. 

If you are estimating 3 tenants in 3 years (initial, plus 2 turns) and each turn costs 10 grand not including vacancy costs after only 1 year of wear and tear, then either your estimations are waaaay off, or your property management company is either the worst company I have ever seen, or they are straight up scamming you, or a combination of all of the above.An A/B SFR shouldn't be having an annual turnover. 

Furthermore, we are fortunate enough to have nice paying jobs whereby our combined income is $350k-$400k.