[turbo6bar]

To avoid taxation, you must trade up in debt.

For example: $100k mortgage now. New properties must have mortgage amount of $100k or greater. Anything less is considered boot and is taxed. Additionally, if you have cash proceeds from the sale, any amount removed (and into your pocket) is taxed. For example, if you have $100k of cash after the sale, you need to reinvest the same or greater into the replacement property.

I understand your frustration with rentals. Sounds like your head is on straight. I recently started screening applicants aggressively, and my problems have gone down immensely. I weigh credit score heavily, now. Of course, when it's good, it's good. When bad, it's really bad.

I invest in suburban single family rentals, and I know the tenant pool is better. My tenants tell me they passed over crappy houses at higher rent to get into my homes. It makes me feel good knowing I'm doing something right. On the other hand, suburban rentals generate less cash flow. Offset by appreciation, though. If you can find quality cash flow properties in nice areas, you should seriously consider it.
best regards, jurgen