It’s not about chaining yourself to a rigid model; it’s about giving yourself a reliable starting point, so when the next tempting deal in Phoenix’s midtown corridor pops up, you know it fits into your broader strategy rather than just hoping it’ll magically work out.At the end of the day, nobody’s going to knock on your door and hand you a neatly packaged portfolio.

Is there a funky property tax issue that arises with the collateral that is a local municipality error and can lender quickly analyze the situation, assess and articulate the risk and allow draws to carry on or will they make the life of the borrower miserable?

And if there is a "why" then the 1031 is what you want to use to get into a new property and defer all tax.  

As expenses fluctuate (property taxes, insurance, maintenance items, etc), the cash flow will be up and down and unreliable.

Welcome to BP and hope all is well out on the rock. 

Two of the units have their own W/D. 4 others share a separate W/D so it isn't taxed very much.

I could also see 15% corp tax and the whole no tax on tips thing.

Taxable income is not cash flow.There are a myriad possibilities for taxes.

Hope this helps.

So yes you can exchange it to save capital gains taxes on $266k plus 19 years of depreciation recapture.