You're OK to carve that one off and not impact the 1031 on the rest.

Ouch... 75% set up fee sounds really high.

Due to the rising cost of buying a home or paying high-cost rent.

Determine how comfortable you are with potentially locking up assets for a long time and how much risk you can tolerate.Market Conditions: The situation of the real estate market might change, and this could have an impact on your choice.

Here's a few things I highly recommend, start by tuning in to the BiggerPockets podcast.

Most lenders will want a minimum of $100K for the property acquisition and rehab.

But with mortgage rates the way they are and with inflation high do you guys think its a good time to buy?

In my opinion, you need to be able to estimate rehabs at least at a high level on your own.

Obviously you want to push rents as high as possible, but you've got to know how to stop before creating an artificial turnover.

I highly recommend working with a real estate focused tax pro to explain your specific strategy, so you can be made aware of any pitfalls that could get you into trouble.