You want to minimize your taxes so you can reinvest and grow your portfolio, the 1031 is a good tool.

While most people invest for the highest ROI as possible while balancing and trying to minimize as much risk as possible, there are also other reasons to invest.

Most distressed transactions are off market and private, where the buyer(investor) is bringing all cash and no to minimal contingency in order to resolve the distress.

If what you have said is true then  people in the market, being incentivized to minimize expenses, should have caught onto the facts you described above and a significant portion of them should have made their homes net zero already and/or demanded it from builders of new construction. 

Gas and electric is minimal, especially since they will be living at the hospital for a bit.

While a savings account is rarely the most appealing option, it could be beneficial to keep some funds there for quick/easy access, minimal tax impact (since you'll barely make anything) and allow you to hedge in case the market tanks. 

Required minimal refresh How did you find this deal and how did you negotiate it?

If you have an old AC unit dying on you, you may be having the warranty company coming out frequently doing minimal repairs instead of the proper repair.

This minimize the risk to the investor on resale but will work against you on the purchase. 

I’m trying to find creative ways to finance and leave minimal amounts of my own capital in deals.