[fintstone]

Yes, a 1031 exchange allows you to immediately reinvest in a similar investment (some or all of your proceeds), but you are still in a rental (or some sort of investment property) and don't have the cash. Of course, you can increase the quality of your investments that way. All of mine are in upper middle-class areas.

My biggest problem is that tenants' expectations are super high, and they call for maintenance on every tiny issue. Sometimes they move in and soon afterwards ask for a kitchen renovation or new carpet...because the kitchen is "dated" and not as nice as on HGTV (even though in perfect condition) or the carpet does not match their curtains. I usually tell them that it is exactly as they agreed to rent it...and if I make anything a lot newer/nicer, it increases the value of the property, and I will have to increase rent to pay for it. Sometimes they will even damage something over and over and pretend it is just too old thinking they will get a new one. Sometimes it works as the paid managers sometimes look for what is easier as they are spending someone else's money (yours). It seems that most renters simply do not realize that the landlord has mortgages, taxes, insurance, etc. to pay for...and think the entre rent is profit. Personally, I am ok with breaking even or even losing a little each year as the mortgage gets paid down and the home value and rents continue to go up...but hate to be taken advantage of. Eventually, you do quite well as they pay off.