Add on all the wood paneling removal and drywall installation, floor treatments, etc, etc. and it got to be a pretty good size rehab cost to prep the house for retail.But like I said, this house was very well-maintained.

We have two contradicting reports on dry wood termite infestation at our quad in San Diego.One pest company recommends fumigation, the other recommends spot treatment and option to pay 400$/year for re-treatment with company's right to modify price after 2 years).How do I make an informed decision on which recommendation to go with?

Also, it would be more time intensive, something I am sorely lacking. 

The tax treatment is different and it really becomes more of a question of where you want the income from this property to go - to your today self or your tomorrow self.Keep in mind, a self directed IRA or 401k may use a non-recourse mortgage, so you have the opportunity to take advantage of leverage in your retirement plan.  

Anyway below are the quotes we received thus far:Asbestos Piping Insulation Removal (170 linear feet)- D&S Restoration - $1900Mold Remediation, And Basement Waterproofing on Secondary basement (flashing, drain pipe, drain baseboard, sump pump and pit, re cement floor) -  A1Waterproofing - $5,850Demo the illegal 5th unit structure - $15,000Replace Section of Cracked Sewer Line - Promen Plumbing - $2000Replace Lead Watermain line to street[advised we just install whole house filter] - Promen Plumbing - $5900Replace Steam Boiler - Promen Plumbing -$5300Install second furnace and hot water heater and separate heat in units(1st house) - Promen Plumbing - $12,000 Reinforce Beams between first floor Kitchen Cieling And 2nd floor kitchen floor (6 new beams and sheetrock,spackle, paint) - J&B Contracting -$3400Termite Treatment [Said no visual termite damage just signs of mudtubes and termite presence] - Aries Termite Control - $1650 for both housesRedo the whole driveway in Asphalt - Boyd Paving - $9,800Redo the whole driveway in concrete - Boyd Paving - $21,000Redo sidewalk - Boyd Paving - $5700Repair cement siding on rear unit (Crack in masonry) - Bergen Mason Contractors -$1500All quotes besides paving the driveway, separating of the heating units,  the cement siding repair, and demoing the building were just sent to the realtors who will send it to the bank.

Hypothecate notes if I need to pull cash  ( try explaining that to Chase)on and on I like the personal service. and I like dealing with a business bank that totally understands the real estate investment world.Now if I had 5 million in cash in Chase I would probably get the same treatment from their business center.. but never in a branch.

I see you live in Austin, it is a hot market where you'll get a good price when you relinquish your property but may have difficulty getting a good price on a replacement property.Hi Jason, There is no specific holding period required for 1031 Exchange treatment. 

We rebuilt . due to new legislation we had to put our own septic treatment facility in.

The estimate for termite treatment is $425 for basic service.

And yes, if the IRS did audit you, they would likely ask enough questions to connect the dots on that linkage.A self directed IRA or 401k can be a fantastic wealth building tool that tax advantage of tax-preferred treatment of income, but it needs to do so on a standalone basis.