You also have to have a long time horizon.

I have done this in GA.The long answer is still yes, but  make sure you dot all I's and cross all T's to the the barment and before entering make sure the house is not occupied. 

Previous owner before the tax sale was not even aware the property was up for tax sale(long story).

It would be helpful to understand the seasonality and other factors that affect bookings.Also, how long have you been a host, and what have you found to be key to your success?

If I want to check what they've been doing I can see the photos they've taken, check my inventory or see how long they spent.

I'm planning to have ROI, rents, cashflow, expenses, debt service, repairs/maintenance, return on equity, appreciation (I think this works over the long-term, kind of hard to predict in the short term especially with what we've seen in the last few years, but I usually conservatively estimate this anyway at 2%) and return on equity.

@Karen Kushner, as long as your replacement property contains an equivalent amount of the same type of property that was segregated then the depreciation will be deferred in the 1031. 

I underpaid on W-2 slightly, had long term capital gains on stock sales, and a small income gain on my personal K-1. 

Got a long way to go against them when comparing the vote to comment ratio. 

Long term I do see this property being a great asset so we don't want to sell necessarily.