U dont hear much about it .. its a niche and anyone who has taken back a seller carry back note usually gets a few direct mail peices offering to buy your note.. thats all it takes  its public record make contact offer to buy .. etc. 

Hi all, My relative wants to combine their $500K personal exemption & a 1031 exchange to liquidate their rental properties without paying taxes, but they are worried about missing the180-day time limits for the 1031 exchange, so they want to involve their son-in-law (SIL).

IMO, it all depends on your circumstances.

Best of luck to all of you. 

However, given the fact one is gone and the other is doing their best to cover all the rent, eviction would be a last option.

The perceived benefit to the investor is they either get the inflated price, or if the deal goes "bad" and the tenant defaults they get to keep all the deposit money and rent and all that.

They specialize in uncovering all encumbrances and can save you from unexpected surprises.

If you sell your only overachiever to go with a more leveraged position, you could have 2-3 properties that may cover themselves or even provide a little profit, but when the rental markets shift (and they do), now you have 2-3 properties that all require you to supplement for their shortages. 

I have one long term partnership that we share capital but I still do all the work ( rain maker) he is a cpa so he does do the books and tax return though :)  WE built one subdivision together were he put in 500k and I made him 1.2 mil in 18 months net profit so that was not bad.

I assume the first house hasn’t appreciate much if at all and that’s why you didn’t sell it and take the tax free gain that could take 10+ years to overcome as a rental?