If you stay conservative, clearly separate each phase of the deal, and stress test the numbers, your model will serve you well and keep you out of trouble.

Of course there were additional upfront costs to furnish the property and make upgrades / repairs.We also use the property ourselves intermittently, which decreases profitability.  

At that stage, platforms like AppFolio or Buildium earn their keep by automating reminders, tenant communication, and document delivery — but for a handful of units, the Google stack works surprisingly well.I’m Lucas with Howzer Property Management in MA we manage everything from small duplexes to larger apartment complexes, and honestly the biggest difference we see between “smooth” self-management and stressful self-management isn’t size… it’s repeatable systems.Happy to answer questions if helpful.Lucas-Howzer Property Management 

Verify in-place rents, confirm realistic operating expenses, stress test interest rates, and see if it supports the debt without creative structuring.

I’ve been analyzing the OpEx challenges for Class B and C workforce housing in our area, specifically regarding the rising insurance premiums and deductibles.I recently pivoted my business model based on some advice from a heavy-hitter syndicator, and I wanted to "stress test" the logic with local DFW/Fort Worth operators to see if this resonates with what you are seeing on the ground.The Pivot:Originally, I was trying to pitch "Smart Home" water sensors as a tenant amenity (trying to charge tenants fees).

In Hayward, Union City, and Newark, values can swing significantly block by block, so verifying your ARV with super tight comps (same bed/bath, similar sqft, within 6 months, same zip or immediate area) is critical before committing.A few things I'd suggest given your numbers:First, stress test that $900k ARV hard.

Minimal turnover.When you combine voucher income with disciplined systems, scaling stops being stressful and starts being strategic.Managing 20+ rentals isn’t hard when everything has a place.Discipline replaces chaos.Systems replace stress.And the portfolio becomes boring, which is exactly what profitable real estate is supposed to be.What’s the part of your rental operation that feels the most disorganized right now? 

Whether it’s creative financing, estate clean-outs, bad Airbnb advice, or properties bought with optimism and sold with stress — I tend to get looped in when things are messy.

More work, more time, more stress BUT more money! 

One thing I’d stress before zeroing in on markets is making sure the exchange actually improves your risk-adjustedreturn, not just headline cash flow.If you’re netting $600k and already cash flowing ~$3k/mo at very low LTV, the biggest risk I see in 1031s right now is trading into a “cheaper” market that looks better on a pro forma but introduces execution risk, management drag, or thinner exit liquidity.The deals that seem to work best in this environment are:Smaller multifamily in working-class areas with stable employment anchors, not speculative growthProperties with light value-add where in-place rents lag market slightly, rather than heavy repositioningMarkets where cap rates actually hold up on refinance and sale, not just on paperI’ve seen investors do well focusing on secondary markets with hospital, logistics, or university employment bases where pricing is still rational and management quality matters more than rent growth hype.