Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!)

The reinvestment must meet two requirements to qualify for 100% tax-deferred exchange treatment. 

I combine because more deferred capex means higher maintenance bills, typically.  

Maybe instead of trying to relocate to save on the capital gains taxes, we could defer taxes with a 1031 or other strategy. 

(I would defer that to @Ronald Rohde for his take however). 

The beauty of doing these deals within a retirement account is that, depending on the account type, the profits made off of the investment are either tax-free or tax-deferred. 

If it is return OF, it is both deferred and then comes through as a long term capital gain, which is currently a lower tax rate than ordinary income.

On top of that, those contributions continue to grow tax-deferred, increasing the overall benefit.

Other forms of RE return can be deferred and potentially avoided (readjusted at death).

Do you defer maintenance?