Your NOI is being compressed but appreciation has created a lot of dead equity. 

If you're try to create a backup plan for owner financing or assumption of their loan.

I am now a devout listener to the BP podcasts and have only recently created a profile and started looking at the forums.My wife and I are looking for more financial freedom so we can travel more and are looking very seriously at real estate to provide that for us.

John Zhao why do you want to create it in Alabama if our in CA ?

Most do not close anything but create tons of paperwork for a brokerage.I am talking in generalities and not about this specific forum topic. 

Clearly not all property management is created equal. 

Overall I’m more concerned with cash flow and returns than a cap rate but I want to make sure Im creating an accurate and somewhat conservative scenario.

Similarly I see some CRE lenders throwing money around again topped by dried up inventory and too many new, overpriced A-class developments going up just to create the perfect storm all over again - this time in the CRE space.

William Davis I don’t see why you need your own down payment if you create equity.

That would not only void your opportunity to actually do a 1031, it would also create an immediate taxable event.Certainly a refinance where you pull cash out is no problem.