You are simply changing circumstances of ownership.You definitely do not want to become part of the 1031 as that is prior to the exchange and the IRS has demonstrated they don't like that.

And this gets me back to the 2nd paragraph, the goal is simply to have the cash value grow and eliminate the insurance company's risk.

After these projects concluded and were sold, a decision was made by him in part due to financial stability (I still needed to work) created over last 2 years and cracks we began seeing in the global economy. 

I tend to buy in the Southern half of the US for 2 reasons:1) you get much higher year-round occupancy rates in the South & it’s simply tough to earn a good ROI in the North if your place sits vacant for a big chunk of the year2) Culturally, the Southern half of the US seems to be a lot more accepting of STRs regulation-wise.

In reality, we shoot to hit the loan amount to simply receive all of our investment back.

But, your lower mortgage doesn't give you cash today to actually fix the issue.Willingness to walk away is simply a negotiation tactic/confidence play. 

Ok so I’m new and I have a question cause simply put, I don’t know.

Value add renovating units, curb appeal, washer dryers etc.Also focus on lowering expenses and utilities and no major capx renovations.Execute analyzation Of owner financials T12,T2T3, lease loss,Rent rolls, taxes, expenses, future irr, vendors Perform due diligence, loan product and title investigation.I’m putting together a booklet presentation with market analyst and Investment Property Example to show potential investors or simply fund my own deal.So much to write but I’m learning.Back to the books, blogs, podcasts, YouTube videos absorbing it all like sponge.Best of luck to all ✌🏽 in 2020 & years to come!

Value add renovating units, curb appeal, washer dryers etc.Also focus on lowering expenses and utilities and no major capx renovations.Execute analyzation Of owner financials T12,T2T3, lease loss,Rent rolls, taxes, expenses, future irr, vendors Perform due diligence, loan product and title investigation.I’m putting together a booklet presentation with market analyst and Investment Property Example to show potential investors or simply fund my own deal.So much to write but I’m learning.Back to the books, blogs, podcasts, YouTube videos absorbing it all like sponge.Best of luck to all ✌🏽 in 2020 & years to come!

@Logan Swanson to keep it really general, cap rate is simply an illustration of the expected "rate of return" that investors are currently expecting to receive if they paid cash for a property.