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!

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

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

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

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

Your ability to close means almost everything and you'll need to make them feel confident in your ability to do so if you target bigger deals right out of the gate.2. 

This could be coupled with the a dramatic drop in the S&P 500 which would feel pretty awful.

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

You may not be able to break the contract this year but would recommend getting additional estimates going forward if you feel it is expensive.

We’d like to continue with this project remotely, but the idea of managing contractors and overseeing a renovation from afar feels a bit daunting.Have any of you undertaken a similar project?