So I'm way over budget on a rental and after installing the washer and dryer come to find out there isn't a drain for the washing machine.

Unfortunately, as the letters were machine processed at the USPS, the sorters managed to break up the the tylenol tablets......so the letter recipients were opening their mail to find this suspicious white powder. 

Example Of A Duplex Deal$50,000.00 All In w/ 20% Down Payment:Purchase Price$44,000.00 Closing Costs$1,000.00Repair Costs$5,000.00Total Costs$50,000.00Income:1 Bedroom upper$525.002 Bedroom lower$625.00Total Monthly Income$1150.00Expenses:1st Mortgage, 80% ($35,200.00 at 6% interest over 25 years)$227.002nd Mortgage, Private Investor Funds ($14,800.00 @ 11%)$136.00Taxes$150.00Insurance$70.00Utilities (water & sewer) $40.00Vacancy Rate (10%)$115.00Repairs and Maintenance (5%)$58.00Capital Expense (3%)$35.00 Property Management Fee (10%)$115.00Total Monthly Expenses$946.00Cash Flow:Income$1150.00- Expenses-$946.00Monthly Cash Flow$204.00Example Of An 8 Unit w/ 10% Seller Financing8 Units at $224,000.00 all in:Purchase Price$208,000.00Closing Costs$1,000.00 Repair Costs$15,000.00Total Costs$224,000.00Income:8 units at $600.00 each$4800.00Coin operated laundry on site$100.00Total Monthly Income$4900.00Expenses:1st Mortgage, 80% ($166,400.00 at 6% interest over 25 years)$1073.002nd Mortgage, 10% Seller Financing ($20,800.00 @ 10%)$174.003rd Mortgage, Private Investor Funds ($36,800.00 @ 11%)$338.00Taxes$450.00Insurance$150.00Vacancy Rate (10%)$490.00Repairs and Maintenance (5%)$245.00Capital Expense (3%) $147.00 Utilities (water & sewer) $300.00Property Management Fee (10%)$490.00Total Monthly Expenses$3857.00Cash Flow:Income$4900.00- Expenses$3857.00Monthly Cash Flow$1043.00Example Of A 50 Unit Deal50 Units at $1,350,000.00 all in:Purchase Price$1,150,000.00Closing Costs$2,000.00 Repair Costs$198,000.00Total Costs$1,350,000.00Income:50 units averaging $610.00 each$30,500.00On site coin operated laundry$500.00On site vending machines $100.00Total Monthly Income$31,100.00Expenses:1st Mortgage, 85% ($977,500.00 at 6% interest over 25 years)$6,298.002rd Mortgage, Private Investor Funds ($372,500.00 @ 12%)$3,725.00Taxes$3,000.00Insurance$1,000.00Vacancy Rate (10%) $3,110.00Repairs and Maintenance (5%)$1,555.00Capital Expense (3%)$933.00 Utilities (water & sewer) $2000.00Property Management Fee (10%)$3,110.00Total Monthly Expenses$24,731.00Cash Flow:Income$31,100.00- Expenses$24,731.00Monthly Cash Flow$6,369.00Financials

You are a pro with a well oiled machine of connections, strategy, financing and market experience.

They are related parties so the quick answer is no on anything to do with a 1031.However the other thing to consider is that by the time you completed all those machinations and paid tax on the 30K and closing costs etc you wouldn't be sheltering much more in a 1031.  

Just thinking about how the machine works here...

I would use a professional grade ozone machine to remove any odors.

But on the other hand if you find the right Property Manager that you can depend on and trust you could turn that $180k investment into a $3k-$4k Cash flowing machine with several properties owned free and clear.

Before you really get your marketing machine going and lots of leads coming in you try very hard to make something out of nothing.. this looks like a something out of nothing situation.

Complaints from sellers that didn't close, boohoo. they still have the property and they took a chance, these are the same people who if they lost a quarter in a slot machine would insist the casino give it back because the didn't win.