Well that is when the lower tenant feels like paying her 20% portion of the rent of $240 per month lol!

That said, I've seen many of these carriers are pulling away from habitation exposures (non-renewing a good portion of that business).  

So if we were to assume the loan, we need to take a second mortgage to cover the equity portion of the loan.

-Allocate a portion of your funds toward extra payments on the current mortgage while also setting aside money for a new investment.

And each former LP (now a tenant in common) can do a 1031 exchange on their portion. 

Then I had another one where the buyer brought as is under the impression that legalizing would be easy and found out it was not ever allowed and a portion of the structure had to be demolished because it was built horribly and a hazard as built.  

We want the investors to pay a portion of the monthly servicing costs. 

So if they buy a condo for $700K as part of a 1031 exchange what is the portion they would have to pay capital gains to? 

Some places do this annually, some places do a portion of the town every year giving them a total cycle of about every 4 years, and in my area it’s common to do a whole town reevaluation every 4-5 years.

@Kezia Edmonson Yes, you can use a 1031 exchange to defer taxes on the sale of your single-family investment property when purchasing a multifamily property, but only the portion used as investment (the three rented units) qualifies.