But I have two "clients" here in Santa Barbara that own large family compounds for whom I manage rehabs and special projects/purchases.

"We are troubled by the significant drop in owner occupant purchases of REO properties in these hard hit markets, which is no doubt compounded by decreased access to credit and a failure to repair foreclosed properties to move-in condition," said Kevin Stein of California Reinvestment Coalition.

The defendant in that action shall be entitled to attorney's fees and all costs incurred in the defense against the action, provided the defendant is the prevailing party.

Is it 21.5% non compounded meaning less than 1/2(21.5%) per year or are you saying 21.5% for the entire 8 yrs?

I suggest not putting yourself in a position where your defense for an illegal activity is that everyone else does it.

I suppose I could gather witness for my defense from all the brown people I rent to, which so far has been 100%.

Multiply those probabilities by one another, and you have a huge undercurrent of risk ballooning and compounding with each passing month. 

Your only defense is stringent selection criteria for tenants and to NEVER EVER EVER take a security deposit.

The real power of the ability to defer payment of capital gains tax in a 1031 exchange lies in the compounding nature of your use of that deferred tax.  

Compounding that we are replicating in other states with different trade bases, municipal guidelines, lending practices, etc.