However, purchasing the replacement property from an estate where your mother-in-law is the executor and other heirs are your wife's aunts and cousins raises potential related-party concerns under Section 1031(f).The IRS generally prohibits 1031 exchanges between related parties unless both the buyer and seller hold their respective properties for at least two years after the exchange.To stay compliant and avoid disqualification, ensure:The estate sells the property directly before any distributions to heirs.You hold the replacement property for at least two years.The transaction is conducted at fair market value with no prearranged agreements.Given the IRS scrutiny of related-party 1031 exchanges, consult a qualified CPA or 1031 exchange accommodator to structure the deal properly and avoid potential capital gains tax liabilities.This post does not create a CPA-Client relationship.

I used a hard money loan to purchase this off market deal.I rehabbed the upper two units within two and a half weeks and have a renter already lined up for one unit.

If you get greedy and put #3 in front of #1 or #2 you can get burned like any other market. 

If it’s a 2 bedroom on paper and a 5 bedroom in reality, then this is a significant problem and is probable a big reason why you say it’s been sitting on the market.

Is there anyone in your local market you could take out to lunch who does flips?

Obtain a working knowledge of the local rental market. 

I am slowly going crazy with how expensive Massachusetts is and I am leaning towards looking at cheaper foreclosure properties.I understand there is some risk to this but I am beginning to think this is the only option I will have because of how fast the market is growing.Thank you for any insight you may have!

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

These numbers suggest this could be a strong buy-and-hold investment, assuming the market supports your rent and expense estimates.Good luck!

Not that I am aware of, but I am not aware of all softwares on the market.