An accountant can step in and correct me, but I believe that is correct.Edit: I just re-read it and it sounds like you are selling some properties, using to a 1031 to then BRRRR..

@Jon SchwartzJon,Your right rereading the original post she said should they just save and buy their "forever home" and then invest in the stock market instead of hoping for the LA real estate to have passive income. 

@Drew Clayton sorry, I just RE-read and saw where you said you found credit unions doing them-go for it if short term investment.

@Aigo Pyles maybe re-read the post and give it another shot?

It’s a lot of legalese but just reread it a few times or hire a lawyer to find the important things such as: what you can and can’t do to exterior/ interior, private insurance and master insurance policy, financial statements, special assessments past and current and future.

@Torey Chumbley after re-reading I can see your point about resolving potential disputes.

I went back and reread what I wrote and realized it came out wrong...just because of one word substitution. 

Read, re-read David Greene's book on out of state investing.

Ah, sorry I re read your post. the 800 - 1K was the cost for the actual 1031.Thanks for clarifying. 

You should address it with your attorney and agent first to see if these were issues raised on inspection repair requests and re-read your inspection to see if they were noted and you missed asking for them.