First of all, the markets that we're investing in hasn't fully recovered from the housing crash, and homes can be bought for significant discounts to their replacement cost.

I am an alumni of North Carolina A&T State University out of Greensboro, NC and I currently work as an engineer.

Don't let the idea that replacing carpet and repainting a unit are Capex, you will do it far more often than the IRS definition. you need to budget these cost on an annual basis and set aside reserves so that while you may not actually spend that each year, over the long term they add up.

First of all, the markets that we're investing in hasn't fully recovered from the housing crash, and homes can be bought for significant discounts to their replacement cost.

Like many others, I went to a seminar and got sold on the idea of real estate investing as a way of supplementing or even replacing my current income.

I am looking for carpet,vinyl installer, hvac to run a duct to the bathroom and inspect/replace furnaces if needed.

Ask them to help you begin to estimate rehab material and labor costs: How much to replace 20 windows?  

So an engineer at work mentioned his renter neighbors had moved out this weekend and he thought the house was a bit of an eyesore.  

From the date of the closing of your sale you have 45 days to identify your potential replacements and 180 days to close on one or more of those properties and complete the process.However, it sounds like this is your primary residence so it would not be eligible for 1031 treatment anyway.  1031 exchanges are only for investment property.  

I haven't had to replace any roofs, boilers, siding, and other high ticket items yet.