Unit has been gutted and they are replacing EVERYTHING

We've had massive wildfires in northern CA that has destroyed thousands of homes, in some areas many were manufactured homes, and won't cover replacing, IF they could even find the inventory from which to purchase as the manufactured homes dealers are months out on orders.

I believe if you plan on using that capital again and again then I would absolutely take out as much as possible AS LONG AS the there is still positive PURE cash flow.

More simply put, you'll probably need to install a new support system to replace the wall you're tearing out.

If you do this enough times, you can replace your W2 income and then go from there as strictly a real estate investor.

Say that HVAC system costs $7000 to replace.

In setting up the utilities, I had the city come out and replaced our trash bins since we as owners are responsible. 

We asked the seller to make repairs we did not want to make ourselves, as well as asked for a few thousand to repair the roof, get electrical work done, and replace some appliances.

The newly renovated rental condos I bought had a landmarked roof requiring a million dollars to replace and each owner is assessed $10,000. 

Sounds like you already have some knowledge so will just answer your direct question.The replacement property needs to be like kind exchange.