How would you structure this?

They can advise you on the best way to structure the LLC and get financing. 

I’ve noticed that in places like San Antonio or even Omaha, from what I read in Forbes, the best projects come from really tapping into that local network.What you did..approaching the owner, closing fast, scraping the old structure..shows guts and a willingness to get your hands dirty.

However, ensure you understand the local tax structure and any potential future changes.Economic Dependence: While Albuquerque has a diversified economy, it's worth noting that government and military jobs play a significant role.

Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.

There needs to be some structuring, for sure.  

Alternatively, your sibling might use a 1031 exchange to defer taxes by reinvesting in like-kind properties, though this doesn't directly fund a primary residence.Other ideas include leveraging a HELOC on the rental properties for the down payment, taking out a 401(k) loan, structuring an owner-financed agreement, or a lease-to-own arrangement.

And if this LLC structure is overkill than what are the alternatives?

You could theoretically structure a deal where you are cash flowing negative, but have an overall positive ROI.

I knew not to expect that in the future but was hoping to replicate some of that deal structure.