We sent out our A/C vendor and he said the A/C unit is perfectly fine except that a small part had to be replaced; total cost from our vendor was under $200.On another property, a dishwasher repair was needed.

This is perfect for me as it lets me use and reuse the money to purchase, rehab, and do a cash out tegi and put all the money back into the HELOC.  

Because of your background in construction I think Fix and Flipping would be perfect for you since you know how to do the work and probably tons of people nearby that can help you.

Better to be safe and build in extra margin and room for error when you haven't perfected the technique.

You'll find that this is the perfect space to be able to grow your knowledge and network.

Especially since everything you said makes perfect sense!!

Keep in mind that most rentals in the MLS are condo units in perfect conditions and larger than the units located in 3 flats.

The murdering part is that some ask for points and a double digit percent pushing the percentage even higher and most want you to start collecting the very next month on the Loan.. that's almost impossible for the Hard you have put in to finding the perfect deal...

Not perfect, but I do have over 20 years under my belt with the market.  

As such, you have a perfectly fine 1031 exchange, assuming all of the other 1031 conditions are met.