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 share tons of free tips on my instagram @ericaoohdesigns and you can also check out my Bigger Pockets podcast episode (933: https://www.biggerpockets.com/blog/real-estate-933) where I share my exact "Designing for Dollars" formula.

Welcome to the community and be ready for a huge amount of information at your finger tips.

If comps are scarce, you might also consider the replacement cost approach, looking at what it would take to rebuild and adjusting based on market conditions.

Quote from @Jackie Lin: @Alan Asriants thank you so much for all the information and tips, so helpful!

Quote from @John McPherson: Looking for tips on the best way to sell my Rented Homes in 1 transaction .

If so, please share a few tips. 

Replacing windows went up about $100 each just to play by the rules.

If it’s an older property or has deferred maintenance, you might want to lean toward the higher end.When it comes to CapEx (capital expenditures), planning for major replacements like roofs, HVAC systems, and appliances is key.

Welcome to the community and be ready for a huge amount of information at your finger tips.