Once you gut you need to bring mechanical and framing up to code.

If you alter a house too far, it will be difficult to undue should you need/want to sell it as a SFH in the future.Fourth, cost of renovations - with additional bedrooms comes the need for additional bathrooms (we aim for a ratio of 1 bath for every 2-3 rooms) and ventilation {it is almost guaranteed that the house was never designed to be occupied at the density you describe above (turning dining and living rooms into bedrooms) and you will need to add mechanical ventilation.  

I understand the mechanics and timing involved with a 1031 exchange but haven't ever heard how the QI's make their money in the deal. 

There are quite a bit of mechanics that go into getting the property and selling it but it appears that your already researching that information.  

Are all the major mechanicals good? 

The mechanical aspects of targeting prospects and running a campaign are discussed, tips and tricks, etc.

If the scope of work does not upgrade mechanicals (electrical, HVAC,etc.) then run for the hills.

That being said, it's got all new mechanicals and most/all sheetrock.  

I haven't used him yet but his name is Tim with McWilliams Mechanical.

Otherwise, please consider the condition of the property, with a heightened focus on your major mechanicals and take an adjustment on those variables into consideration(maybe 7-8% for maintenance & CapEx).4) What is your fixed expense at $600?