I am exhausted.I went ahead an sent in $5k since I do know that I owe something and I'll pay whatever is left one we can actually figure out an accurate number.

@Ran Fridman, What you're trying to do is pull out money ahead of your 1031 so you can get cash in your hands tax free. 

It seems their recommended strategy hasn't really changed and aligns pretty closely with what I read in Stephen Fishman's book "Every Airbnb Host's Tax Guide," that is to set up a Wyoming LLC that holds an LLC in the state where property owned (or another vehicle in CA where LLCs are so pricey) and hold it as a partnership. 

Real Estate is the constant investment vehicle.

Pull the trigger and move ahead, at the worst case scenario it's a learning lesson. 

I think you’re definitely on the right track and are definitely way ahead of where I was at when I started.

I'm probably over-thinking it but I like to be a few steps ahead so I know what options are available.  

If seller are planning ahead, they usually want enough down payment to cover the recapture tax due in the first year.The real benefit I *think* (someone more knowledgeable than me please chime in here) is that if say he passes away after one year, the rest of balance due on would be 'stepped up' to the current value, so no tax due to the heirs.Dan Dietz

You're likely way ahead of the normal BPer in your W2 or source of income job to enter these markets, and I understand if you don't want to share.

Starting month 4 you would come out ahead.