Hi @Ray Slack, Operating expenses like prorated property taxes are not routine selling expenses and are therefore not "permissible 1031 Exchange" expenses. 

Then I would probably go the lease option rout. In

The way the leases are setup as a non triple net situation in a multi-tenant commercial building means that I field a ton of calls and things that I consider routine, but they fall to me. 

If they posted my the same cheque (check) on the day the rent was due and it arrived several days later I'd consider the rent late.I'd expect bank transfers etc to arrive into my account the same day the rent was due.Again, thinking purely practically if I received notification each month the rent was paid on the due date and it arrived in my account the next working day I wouldn't be inclined to make an issue out of it. 3 days or more is a problem, less is a transactional delay I can live with, especially if it's routine and reliable.

Your property manager can help decrease these cost by finding quality tenants and doing routine inspections.Feel free to reach out for any resources. 

A routine will be your best friend!

The problems that come up during our everyday business dealings may seem routine to us but could represent a major pitfall for someone who is not used to dealing with them.

Yours telling you how the journal entries work when you ask for tax advice, and telling you to include return of principal on a 1099 is a little eyebrow raising. 

Conventional loans routinely go down as far as 5% and sometimes 3% under certain first time buyer's programs. 

Title companies in Wisconsin handle most of that stuff routinely.