They had been using a shed in the backyard as a dog fighting arena.

They love going under houses, porches, sheds, etc.. 

Please shed some light on this situation.

@Jim Cummings is right, you could sell as a whole with a 1031 and even combine that with your other property to buy something that sheds more cash flow. 

When I tell Californians that I can get them a house for $15,000 in Alabama, they think I'm talking about a tool shed.

Investor is getting materials as needed:*Painting (including wallpaper removal and patching)3BR/2BATwo LRHallway/EntrywayDRTotal - $2150 (we have most of the materials on this)*Popcorn ceiling removal = $1200*Laminate flooring installation (w/ removal and disposal of carpet)1550sq. ft. x $2ft = $3100*Four door installation = $800*Painting and repair of shed = $200*Fence replacement (144ft) = $500*SS apps = $1750*Total = $9650 x 15% = $11,097Outside looks good....I should add in some landscaping, Will.

I was wondering if there was anyone who can shed some additional light on this?

THIS place has an extra storage shed out back!

Often times these answers can shed some light on the various approaches that can be taken.

I'm fairly certain I explained it to him the correct way, although he did not seem too interested in listening.Can anyone shed any light on why this lawyer would look down upon any transactions of this type?