I'm about to form a partnership to buy property with someone, and I'm not sure how the 1031 rules might apply here.1.

No other contingencies, inspections, etc.There were multiple offers submitted with mine and we had to fill out a multiple offer form as well as a number of riders and addendums that SUPERCEDED the contract.On the 5th business day, they countered with $89,900 and $2,500 Earnest Money with mortgage application within 2 business days instead of 10 that the standard PA contract form we used listed.

Does one form a company LLC and then purchase each individual investment under its own LLC?

Also, I will need to form a corp for this so I can retain earnings in the business without giving it to uncle sam.

What would the costs be to form a SP?

You should form a relationship with an appraiser like we have.

If you cannot find a group, form a "mastermind" group that meets for breakfast once a week.

My advice would be to speak with an attorney and discuss if you can form a partnership with your relative and create a legal situation to achieve your goals.If that is not the case, or if there is not enough time, then Jon's suggestion of a "Deed in Lieu" might be your best option.You made the mistake of jumping into a deal without securing your back end financing.

Everyone around here is still asking 7-8% on retail centers, pro-forma of course.

Loan/pro forma looked like this - purchse price on prop 135,000.0025% equity + closing costs (in money) +/- 35,000repairs loan = 55,000 (vandals got the pipes and it needed a few things)repairs costs = +/- 25,000 (balance to me as pay for management and painting and other little stuff)current monthly payment is about $750 per mo interest only until the 2 mortgages roll into one in Oct '09.