In addition, the 1031 like-kind exchange allows investors to defer taxes when they reinvest the proceeds from the sale of an investment property into another investment property.Plus the withholding 15% tax is refundable once a tax report is produced and the capital gains are submitted to the IRS.

Here in Orlando, we definitely advise investors to proceed with caution, simply because smaller condos compete directly with hotel rooms.

-When the time comes to pay back my father, will we be able to distribute proceeds from the sale/refi as we see fit?

For example, if 50% was your residence, you may be able to exclude 50% of the allowable $250,000/$500,000.1031 exchange: If you plan to reinvest the proceeds into another investment property, you may be able to defer capital gains taxes through a 1031 exchange.

The more you know what lenders are looking for, the better you'll know your proceeds and navigate the financing process.Let's go! 

This lets you reinvest the proceeds into a new property and defer those pesky capital gains taxes.

Both would still need to be informed, but it makes it clearer how to proceed if they are not on the same page.

This can involve public hearings and meeting specific requirements.Surveyor: Hire a surveyor to map the property and define the boundaries of each condo unit.Legal Counsel: Work with a real estate attorney to ensure all legal requirements are met and the condo conversion is properly documented.Financial and Operational Considerations:Condo Fees: Determine the monthly condo fees for maintenance, repairs, and other communal expenses.Insurance: Ensure proper insurance coverage for the condo association and individual units.Reserve Fund: Establish a reserve fund for future repairs and maintenance.Tax Considerations:Initial Purchase with 1031 Exchange: 1031 Exchange Basics: By using a 1031 exchange, you defer capital gains taxes on the sale of your previous property by reinvesting the proceeds into a new like-kind property.Down Payment and Financing: You're putting down $220,000 and financing the remainder at 8% over 20 years, resulting in a monthly payment of $2,593.Converting to Condos and Selling Units:Capital Gains Deferral: The 1031 exchange allows you to defer capital gains on the initial exchange.

Do 1031 rules allow me to use the proceeds from the sale of the first property to purchase the remaining 50% of the LLC that I don't already own...assuming the numbers line up?  

Make sure paperwork is in order and correct before proceeding with any evictions.