To protect the 1031 status, they should hold the property for at least 1–2 years as an income-producing rental, report rental income on Schedule E, and document all activity properly.

If you can't bring in 7% it's better to liquidate and deploy the equity elsewhere, even if that is an index fund“If you can't bring in 7% it's better to liquidate and deploy the equity elsewhere, even if that is an index fund”Not sure that’s always true.  

Hi Rogelio,No-financing contingency is definitely more risky especially for first timer.If you have high credit, high liquidity (more than what you need for this deal), no potential red flags, then it could be worth considering.

You don't need to segregate your deposits from operating funds (unless legally required) if you are disciplined enough to track it by spreadsheet.You need to maintain some liquidity for tenant turnover, but you don't need 100% of your deposits available.

What's your ideal velocity based on how liquid your capital is?

P/E is up, greed is getting higher, CAPE is like 34 for the s&P

As some mentioned, there may be options with more limited liquid reserve requirements.

It might work for a bit, but if there's a major dip in the stock market and the value drops significantly, the might have to liquidate some of them to meet the covenant discussing proper margin.

CrowdStreet, SyndicationPro)    D) Sharing an Excel or Google Sheets financial model     E) Phone or video call walkthrough (no documents)    F) In-person meeting with printed materials (pen & paper)    G) Other (please reply with yours)Please vote by replying below with any combination of A, B, C, D, E, F, or G.

And I suspect their E and O will kick in if this money is lost  just sayin..