If you hold the fund for 10 years, the gain on the investment is tax free.The question you need to answer is can I make more money in 10 years investing my gain in the fund (plus another investment with your gains) vs performing the 1031 exchange investing in a replacement property?

I cannot comment on the performance of his fund though. 

It's highly unusual that an investor would want to sell a high performing unit with a great tenant...So expect problems if inheriting at tenant.  

I never had an outside recruitment firm, but I cannot believe it performed this bad. 

Alignment up front is cheaper than mediation later.Operationally, aim for fewer decision-makers when you can, set reporting expectations for the property manager, and give yourselves the contractual ability to replace the manager based on objective performance.

Most investors who are performing volume are getting contractor rates which far surpass any deal a homeowner is getting for one off purchases.

People focus WAY too much on how investments perform today.

I’m a local agent and investor here, and for new investors doing BRRRR or flips, I’d recommend spending time learning about the neighborhoods and typical property types that perform well.

Are there specific neighborhoods where it performs well (or doesn’t)?

Functionality:A well-sealed crawl with a rat slab, vapor barrier, and spray-foam insulation can perform just fine — especially if you keep it conditioned and accessible.