Like kind describes nature or character—not identical property type.
The IRS explains that qualifying real properties can be like kind even if they differ in grade or quality. Improved and unimproved real property may be like kind. That is why an exchange does not necessarily require apartment-for-apartment or retail-for-retail replacement.
However, the property still must satisfy the applicable real-property and holding-purpose rules. U.S. real property and foreign real property are not like kind to one another for Section 1031 purposes.
Investment underwriting remains separate.
A property can be potentially like kind for tax purposes and still be a poor investment. Tax eligibility and investment quality should be analyzed on separate tracks.