1.- Closing cost are about 7% (calculated based on the ARV) to sell the property.
2.- Low Liquidity so higher spread on the bid and ask, thighten lending procedures, economy, job rate, foreclosures still around, etc, etc, so more time holding the property.
3.- 1031 requires a timeframe, along with the timing of the lease, in the case the investor wants to rollover to another property.

Typical deal:

65K Buy
10k Rehab
===
75k All included.
-3k Closing cost for the refinance at the ARV

100k ARV
22k (Unrealized Gains w/o final’s closing costs)

-7k Closing for the final sell (realtors fee’s etc)
15k (Unrealized Gains with final closing costs)

and because points 2) and 3) its like to be a sell with a discount lets say 5k less to have everything on time.

10k Realistics gains (under current circunstances and for an average investor, using a realtor for both transactions buy and sell)

10k its good money and it may take 3+ years to have it realistically in our pocket.

Monthly income will offset Tenants and Expenses’s risks.

Thanks
Will