After listening to Leon Yang's podcast, I realized that I need to start researching the history of my Houston market since I have only lived here for a couple years.

So, it looks like he stepped in that one, too.Conclusion:  he will pay capital gains tax on the $120,000 in the year of sale; he will report $82,500 of annual interest income; and he will get no benefit from the $60,572.04 portion that he sends to the original owner.

We are each other's ying and yang on paper.

The yin-yang in seasoned vs newb -- when you're dealing with someone that's seasoned you tend to get laxed and not check certain things out because you know(suspect) that they know better(more trusting relationship).

In my area, short sales don't have a lot of appeal to investors, as they typically knock off around just 15-20% ARV, depending on condition.However, it sounds like your aunt may well have a good case to short sale her home.  

When he put it up for sale, he got a lot of interest with one being full ask.

@Wei Jie Yang Yes, I've got all of the above for the Central Iowa area. large and small cities!

My brother has an off market lot in south Sacramento for sale. He's

@Wei Jie Yang There's no one right way to do a partnership.

But if the QI isn't in place at the time of sale her ability to 1031 is done.The last covid extension expired way over a year ago (I'm losing track of time this has been so tedious).