@John Cooper when you or someone you care about is living in the home it is important to be extra vigilant in choosing tenants.

I would encourage you to sit down with a couple of real estate salespersons and choose one based upon experience as well as knowledge of the area. 

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!

The implication is your ex-wife cannot simply choose to stay beyond a 60 day notice.  

Wholesaling can be a great way to learn a market and build capital, but holding rentals can provide steady cash flow and equity growth over time—especially in markets like Detroit, where entry prices are lower and rents are solid relative to costs.If you’d like to learn more about navigating Detroit, feel free to reach out—I’m happy to share some resources or insights from my experience.Best of luck in whichever direction you choose!

I would advise finding an investor friendly realtor when you choose a market.

From choosing a property management company to landscaping companies.  

You do not need to take on new debt for the $450,000 reinvestment unless you choose to do so for other financial reasons.If you have further questions or need clarification, feel free to ask!

You got the experience, now you can choose something.

For example for a few holes in the walls they have someone paint an entire unit and take their spread.