The seller did not realize there is a cost to lock in rates.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

As an out of state investor, I made the decision to pull my equity out as construction costs in the area are incredibly high with limited availability right now.I completely agree that luxury rentals would be my prime target for a 1031.

I'm just curious...I'm here in CA, and with the cost of housing, I'm always wondering if my home is too large and if I should be finding other ways to invest my money, such as buying rental property (2 town homes instead of a house for example) and moving into a house later. 

What does something like that cost?

If it's buy and hold make the landscaping low to zero maintenance to save on costs or having your tenants be responsible. 

The unknown is a big factor that WILL cost you money in the long run.

It has proven to be more difficult to set up than expected mainly because of having to use a third party company for a physical business address1.

What I mean by that is for instance in a place like Newport Beach California where houses cost millions to buy there may be apartments available for 2000 a month, which is way less than the per square foot of a purchase.

Remember, the cost of a mini split is really driven by the number of head units inside and not the outside unit.