I'll defer to @DeanHarris and his experience for more info as I'm relatively new in Memphis.

In some cases it can be beneficial to defer the taxes with a Sec 1031 exchange.

That being said, I've compiled all of the information and have pulled all of the pertinent information from the county tax appraiser's website so I can market to these property owners.My target properties are small multi-family properties that are in various states of disrepair or have significant deferred maintenance.  

Hey Landlords, How do you determine whether or not to rehab or defer maintenance?

Would either source ever allow interest payments during construction to be  deferred until long term financing was secured?

I am renting out majority of the house.Cash Question: Can I pull 20% out and be non-taxed (held for 2+ years) and roll the rest (80%) by 1031 exchange into rental properties as tax deferred?

I have looked into doing a deferred like-kind exchange (reverse 1031), but would then have to figure out how to come up with the money to buy the investment property by January 12th still. 

They're starting to get their act together, but a couple decades of deferred maintenance on the complex resulted in a special assessment above the normal HOA dues to pay for some extensive structural repairs.This sort of thing pretty much only applies to condo complexes.  

Keep your down low & you should have a nice Cash on Cash return, assuming the property doesn’t have a lot of deferred maintenance that needs to be done now.

Freddie Mac SBL is for loan amounts over $1mm and they will want 90%+ occupancy with no major deferred maintenance.