I am out of state and the only way that I feel that I can get people to walk through the properties are if I find them on market and have Shawna write up the offers. 

So when I see an advertisement like this I feel like it would be a waste of my time and money, but perhaps interesting for others. 

The seller is out of state and even visited the project a few times to check on the progress which I think helped him feel good about the whole deal as well. technology made the whole process a lot easier in the interim.

However if I was an agent, broker, GC, etc I do not feel that it would be my responsibility to verify the underwriting.  

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

Either way, you feel you need to repaint the walls.

It may be a tough pill to swallow if you feel you’re totally right, but you may be surprised at the LEGAL opinion rendered by counsel.  

It normally takes 5+ years of rent increases before you feel like you are doing ok. 

Hope all of that makes sense but feel free to post with anything else. 

Feel free to shoot me a message if you think that I could be a resource.