Of course, what they paid isn’t going to take into account the money they have spent on renovations or remodeling, which can be substantial.  

Set up a contracts account at both Lowes and HD. 

I'm an accountant by trade.

The designer talked about has a completely different account then the designers I usually recommend, and I would have had red flags to begin with.

Following this exchange, and after a few more callouts from Melanie, you appear to have downgraded your account on BiggerPockets, and gone inactive coming back only recently to respond to Melanie's post here. 

When you pay cash for a $400,000 home and rent it out, your rate of return will likely be less than 6%.You could invest in stocks and earn 7% or better.You could put the money in a high-interest savings account and earn up to 5%.I don't understand why anyone would pay cash for real estate, erasing many benefits that increase the rate of return, while exposing themselves to the risk of loss (turnover costs, bad tenants, capex, etc.). 

I’d hold the PM accountable for poor oversight—they should’ve been more proactive.That said, it’s also important to weigh the long-term relationship with your PM.

@Megan HerringtonBigger Pockets is a great place to find a real estate tax accountant. 

Confirm that the warranty applies to the type of property you own and consider whether the annual cost and service call fees make sense compared to just handling repairs yourself or using your own trusted contractors.

Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.