I am sure early on in your career you`ve made mistakes and trusted the wrong people/professionals, and I bet that didn't prove you a bad real estate professional.

Investment Info:Other buy & hold investment in Pacific Grove.Completed a 1031 exchange into a retail/office building, then converted the second floor into a short-term rental (STR) and mid-term residential unit.

As mentioned, your best bet is to get an adjuster to try to assist on working with you to maximize the amount received.

I bet the numbers look a fair bit better than here, I would hope. 

Depreciation helps reduce the taxable rental profit, potentially bringing it to zero or even creating a loss, which can carry forward to offset future rental income or other capital gains.For high wage earners, other tax strategies could include leveraging cost segregation studies to accelerate depreciation on rental properties through bonus depreciation, taking advantage of tax-deferred exchanges (like a 1031 exchange), or maximizing deductions related to property expenses (mortgage interest, property taxes, insurance, repairs, etc.).

Manage the property for him in exchange for a 10% management fee.Accumulate the cash to use as a downpayment for your own investment property.

Ask if they have any other projects they need asset management help with, and offer your services in exchange for an equity stake rather than a paycheck.That's how I would think about it

So for example, you give the seller $5k upfront in exchange for the right to purchase a property (let's say worth $200k today) for $250k in ten years.

And I'd bet your 'Contractor' is not licensed or is not very good compared to typical standards...But good luck....

Can the limited partner use the proceeds for a 1031 exchange?