Recommend you take a look!

You’ll likely find a strategy that aligns with your goals and lifestyle.Since you’ve been enjoying the BiggerPockets Money podcast, I’d also recommend checking out the Real Estate Rookie podcast—it’s great for diving into beginner-friendly strategies and learning from others who’ve been in your shoes.Feel free to reach out if you want to chat more or bounce around ideas.

.- The owner has full ownership and control of the property and can make all decisions such as when to sell, or may decide to operate the property according to their own wishes even if those wishes are against the recommendations of the property management company.

FYI, we were able to get a 5.5% rate from their recommended lender with 20% down.  

Quote from @Brandon Croucier: Hi Kathy, at the end of the day the mortgage industry is so vast & wide it's essentially like trying to navigate the Sahara Desert.I highly recommend working with an experienced mortgage broker who knows the ins and outs of the industry to place you into the most competitive product for you.More times than not, people save money working with a small shop broker.Kathy,I wanted to revisit this to offer a a tad bit more and Brandon above is correct.

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

A great CPA who specializes in STRs can confirm this and help you stay compliant.About That CPA…Honestly, I’d recommend finding a new one.

I would not recommend this one.

@Felicia JenkinsI recommend going with a long term rental.

I highly recommend finding a broker and have them find a policy that meets your specific requirements.