Additional info:primary 1031 exchange rules and requirements include: 1) same taxpayer: the taxpayer who sells is the taxpayer who buys, 2) property identification within 45 calendar days post closing of the first property, 3) purchase of the replacement property within 180 calendar days, 4) trading up: the price of the replacement property is equal to or greater than the old or relinquished property, 5) hold time supports the intent to hold for investment, and 6) related party transaction regulations. 

There could be several ways to achieve this but knowing the subdivision rules is key. 

It seems to me like an easy 3% ish percent equity gain or a way to reduce the loan a little and increase cash flow a bit for almost nothing, that's my thought any way.  

It is very easy to install as well.

Long-term I'd hope to grow a buy-and-hold portfolio, but I'm very focused on this first purchase for right now.Since I work downtown, don't own a car (and don't want to), and spend most of my time in Central LA, I'm looking really closely at areas around downtown: lower-cost areas with decently affordable 2-4 unit buildings (in the $400,000 to $800,000 range) like Pico-Union, areas around USC, and even up around Hollywood/Koreatown when the rare good deal shows up there.I've been looking around on Redfin a bunch, but have seen little to nothing that satisfies Josh and Brandon's "Two Percent Rule" (or even 1% rule).

Without being a cash buyer and the market being crazy makes the 70% rule seem almost impossible.

It's done all the time you need to know the lending rules for your state.  

The general rule is that a veteran may have only one outstanding VA loan at a time.   

If it was easy...

@Carlos CoronadoHey Carlos - welcome -A cash buyer is easy to find if you have the property ....