Definitely get with a qualified tax professional on this.

The current tenants are month to month and not interested in buying, and the existing mortgage balance is assumable (3.65%) for qualified buyers.I know it's a great house -- and with the assumable mortgage -- a great buy for someone looking to save with current interest rates sitting as they are. 

To establish a 50-50 ownership in both the property and future profits, you'll need a formal agreement outlining each person's contributions and rights.

i wouldn't tell you where you should move since i don't know you.also, a lender would be in the best position to advise whether you qualify for a specific loan. 

The first step is talking to a lender and getting pre-qualified.

He takes the same risk as any landlord out there, since a lot of renters would not qualify for a mortgage and default anyway.

@David YoungTo turn your paid-off home into a successful investment property, start by formalizing a lease agreement, assessing necessary renovations to maximize rental appeal, and calculating your cash flow after expenses.

That would not qualify for a 1031 exchange. 

Regarding the location of the Qualified Intermediary (QI), it doesn't matter whether they are based in New Jersey, Florida, or elsewhere.

If that LLC can qualify for the loan, it should be able to be refinanced.