Another reason to only do it when you have nothing to lose if they sue you for breaking your lease. 

A lawsuit, divorce, bankruptcy, death, - all could really jam up things and cause you to not only lose your 1031 exchange but the money they are holding as well!!

At this point, if we can sell for $150k, we will still be losing some money, but the monthly bleeding of the line of credit will end, and we can at least be free from this and put it behind us.    

Since you said the sales price is $180000 and loan around $165000 so Mom needs a down payment plus the costs.The seller may lose a portion of their entitlement, not knowing their situation, cannot speculate but the loan is small, so perhaps a percentage of the entitlement.The seller doesn't have to stay one year, seller can move and ask for exception, seller cannot rent the property in the first 12 months. 

Hi Mayuresh, personally not a huge fan of the Cleveland market because it's losing population year to year and companies aren't moving there.

I even heard of a landlord being sued and losing and having to back pay all the rent payments. 

Every investment is a risk that you could lose EVERYTHING.

If the name of the game is "be the biggest idiot," it's ok to lose and let someone else "win."

It would really suck to lose money and also have to pay taxes. 

If you lose them, you can download new copies.