Being 2000 miles away is a disadvantage.

That's why savvy investors with thin capital are at a steep disadvantage. 

As long as everyone operates by the same rules, there’s no disadvantageous.  

Several posters have already laid out quite well the advantages and disadvantages of each approach from a cost and cash flow perspective but minimal attention has been given to asset protection differences of using an LLC so this is where I'll focus.First, I think it's worth touching on insurance benefits and limitations.

The savvy RE investor is at a real disadvantage with on market properties. 

OOS investors have a bulit-in disadvantage compared to local investors.

With that in mind, I NEVER used an inspector, property manager, or other professional recommended by someone else in the purchase process that might be able to work together to put me at a disadvantage. 

.: I personally have invested in Rochester NY, which has its advantages and disadvantages...

If you can’t quantify risk and don’t understand the mechanics of “weighted” average of expected return and range of returns (standard deviation) then you are at a severe disadvantage and should consider a competent investment / financial manager for your investment capital.  

This most surely will affect a 1031 exchange, maybe to your advantage or maybe to your disadvantage but I am sure it will complicate things.You might consider selling with SUB-2 and a wrap owner financing loan.