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.

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

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!

I think it's very dependent on the property and 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.

Any advice on starting out on this in the Houston or Katy market?  

It insures all types of risks but does do a nice job with rentals in many markets

I'm actively seeking mentorship from someone with experience in similar markets who can shed more light on this process.

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

I know pools are a must have amenity to compete in many markets and I have to admit that I'm a bit hesitant to enter those markets due to the potential liability risk.