Hopefully you will acquire numerous investments in all sorts of assets. 

But coming from some cities in Riverside County, some in San Bernardino County,some in LA County you would find out alot of people would say Santa Ana is luxury city....LOL...Its all perception, you would probably think i was crazy to mention Compton...When you think about the history of the city and what you see in movies, you would run, but guess what, My wife grew in a very nice part of Compton, where there are really nice homes, owned buy older people with good city and school jobs.

Please read through the numerous threads on BP regarding this and consult a local, knowledgeable, attorney before structuring such a deal.

She is an acquaintance of mines...we have spoke at a national conference together numerous times 

Consequently, they generate their own problems and high vacancies.Contrarily however, beach cities (eg Santa Barbara, Huntington Beach, Ft Lauderdale) and mountain ski resorts (Jackson Hole, Vale, Mammoth Lake) have so much activity that the accommodations is just a trivial necessity to facilitate the activity.Where there are numerous class-c's in resort locations - - the area is over built and I would find some other location to invest (the lowest common denominator drags you down), unless class-c is your intended market segment.Best wishes.

Numerous homes were given away for $1.http://money.cnn.com/2013/08/20/real_estate/dollar-homes/index.htmlYou will obviously have solid positive cash flow on those homes in the short term, but the area is D-class, and when the tenant moves out you will almost assuredly have significant damage that needs to be repaired.

Multiplying the result obtained under item 1 of this subparagraph by a fraction, the numerator of which is the number of months that the deposit was held that year and the denominator of which is 12.So basically (correct me if I'm wrong) it looks like your interest rate is tied to the U.S Treasury yield curve rate or 1.5% (whichever is greater)

@Jabbar Thomas Agreed it is a good starting point but a lot of the data they do collect are typically outdated so it skews the values and overall perception.

the OP would be wise to spend an afternoon and search on BP for the numerous "appreciation vs cash flow" threads.

The challenge  will be to demonstrate that your intent did indeed change from sale to hold to sale and that you weren't just giving the perception of hold so you could 1031.You've got a good plan together and I'd encourage you to simply hold the property over a year and evaluate.