One guideline I use says that if the rent is $1000/mo, then the most I can pay for that rental (including any renovation) is $80,000.One caveat though - if you purchased that $80K property and it had plenty of deferred maintenance (needs a roof, windows don't work properly, old HVAC, galvanized plumbing), then you would need to have these items fixed prior to purchase or factor in this maintenance (pay me now or pay me later...).  

Basically do your research prior to purchase.  

Hi @James Defazio,There are a number of strategies that you can consider, including:Tying up the Replacement Property through a lease option.Finding a way to accelerate the sale of the Relinquished Property.Or, look into structuring a Reverse 1031 Exchange transaction.The Reverse 1031 Exchange transaction would allow you to acquire and close on the purchase of your Replacement Property prior to selling and/or closing on the sale of your Relinquished Property.The challenge is that your equity is trapped in your Relinquished Property, so you must find a way to finance the purchase of your Replacement Property prior to closing on the sale of your Relinquished Property.  

Question is, should I just sign an extension of prior owners lease or have them sign a brand new lease?

Great example of the BRRRR strategy like I mentioned prior!

If results of said inspection reveal (A) additional large items of repair or maintenance needed without prior knowledge by buyer or (b) additional repairs where estimates add up to 1% of the sale price; the buyer may renegotiate the terms or rescind offer." 

The only way you could do that is if you had a stock pile of older plumbing and wiring that was date coded prior to your buying the building

Now AS Ned knows I grew up in this business in CA and we bought hundreds of parcels each and every years .. so our title company would insure us day one after recording of the tax collector deed.for someone new or one off or not in the business title insurance is going to be something they want to ask about up front if a sale in a few years is what they want to accomplish or borrow money.the ONLY way a CA tax sale can be over turned is if the person who lost it can prove the county did not publish 21 consecutive days prior to the sale as is the law...

If anyone could assist based on personal knowledge or prior experiences that would be great!

Well having rock solid credit, I decided to leverage what I have and cash advance my credit cards, and prior to that apply for a couple more.