A 1031 Exchange is also known as the Tax- Deferred Exchange, which allows the different shareholders as well as different depositors to reinvest the profits that these people had acquired as well as earned, most particularly when it comes from the different financial transactions of the property that the investor had advanced without acquiring different taxes from the government.

States and some cities get broad latitude on administration of the program.

Those records not only helped with tax filing but also guided future projects by showing what provided the best ROI.

Here are the details of the property:Property Overview:Location: Texas2 lots, 2 warehouse buildingsFinancials:Mortgage: $4,897/month (balance: $530,000)Insurance: $830/monthProperty Tax: $1,800/monthBuilding 1:1 tenantRent: $7,570/month12,000 square feetBuilding 2:3 tenantsTenant 1: $2,850/month (5,000 square feet)Tenant 2: $1,793/month (2,500 square feet)Tenant 3: $895/month (1,250 square feet)The property was appraised for $2,200,000 three years ago.Given the current rental income and expenses, the cash flow is decent, but my family friend is looking to explore options that could potentially yield better returns.Would it make sense to:Sell the property outright and invest in higher cash-flow opportunities?

It's low risk and tax free on the gain.

You will get away from income taxes and annual registration fees by going to the townships, but your property taxes skyrocket which may offset some of the rent increases.

And still defers all the tax and depreciation recapture in the 1031 exchange.

If you have a regarded tax entity, e.g. partnership, S Corp, C Corp, you need complete financials -- P&L and balance sheet to adequately prepare the tax returns and answer tax related questions. 

Check with the plan administrator and use that verbiage.  2.  59.5 is when you can take distributions without penalty.  

Completely agree with the original post but an LLC is NOT a tax vehicle.