For now, we just contact the city/township construction department to ask about pre-sale or pre-rental requirements and follow along. 

@Ricky Sanchez One of the requirements of doing a 1031 exchange is that the tax-payer for the relinquished property has to be the same for your replacement property.

So thats why its a bank requirement.. this was a HUGE mess in the GFC.

Also since it's a 4-unit it would need to meet the sustainability requirement. 

Quote from @Jokari Trueheart: HI, almost 11 months ago I purchased 3 duplexes and I borrowed the funds from my personal residence which I took out a equity agreement for the down payment on the investment property, great idea at the time because I have 10 years to pay it off and theres no payment requirement, but , I learned more about the consequence that it takes a large chunk of my equity the longer I take to pay it back, so my goal was to refi cash out the investment property to pay it back but I don't think theres enough equity yet to pull the full $106k needed, I only borrowed $88k but with the equity percentage for one year i'm paying about $18k in equity on top of the amount I borrowed if I pay it off in year one, so I need this paid off ASAP before it increases more.

They'll require that you fill out a bit more information, and even ask for a picture of you holding your driver's license next to your face to confirm your identity.

Additionally the lender might require 6 months of payments to be made on the loan before you can refinance again.

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To meet like-kind exchange requirements, the replacement property must be held for investment, and your son living in the home may raise IRS scrutiny.

As you mentioned, the IRS requires distributions (RMDs) so they can get their money in a timely manner.