@Taryn Elbaor, @AUDREY DESOUZAhas the right idea. 1031 is a federal statute but most states also follow suit and recognize the same process.  

We found rotting floor joist, a mold problem, and some risky tenants He did not want to recognize the risk we where exposed too and the deal fell apart.My misstate was agreeing to a low cap rate before starting due diligence with out communicating my intent. 

Please forgive any grammar mistakes - I am using voice recognition software which doesn't always recognize my voice.

I don't know how active you are in the forums but the more you are the more you start to recognize who the seasoned players are.

So can about 100 other mid-sized to large cities and every time I read what you write I recognize that you promote cities where you invest.  

@Ned Carey The 3 or less comes from SEC regulations for small partnerships and raising funds, care needs to be taken that the entity is not recognized as raising capital and a note is a bond.

I found it easier to recognize relative value this way. 

Typically, but not always, C class properties are older than an A, and therefore, capex would be higher for older elements of the property.As someone else mentioned, I would recommend recognizing more property and tenant risks than I would capex.  

Because its the "Beach" more people recognize it thus drawing more attention to the city and more people.

I'm a buy and hold long term investor and the growth in that area makes it hard to pass up on an unarguable growth area, which the state recognizes and the county is obviously preparing for.