I've found a prime vacant 2 acre lot at major intersection of 2 state highways, on route to the coast.

Partial 1031 Exchange transactions are perfectly okay and are done for many strategic reasons, including, using of loss carry forwards, creating a cash position, reducing outstanding debt obligations, and taking some money off the table for any variety of reasons.

@Hadar Orkibi I've actually had a hard time matching the numbers here that I got in Memphis using an outstanding turnkey provider.

However, you have to follow a few design principals since the boxes get shipped down the highway.

You'll need to owner-occupy for at least a year, and I believe you can't have more than one FHA loan outstanding with an LTV of 75% or greater.

So we bought agriculture land around 1990, around 2007 the surrounding lots and land around us have been bought for use for commercial properties, but couldn't buy our house/land for the price they wanted (they actually went to the state regarding this; the state panel said that we had the right to our land, and have the right to sell it at our price, knowing that the developers would convert it to commercial and thus our price was reasonable).The state also actually used eminent domain to pave way for the main street right off a major highway and they took about 1/10 of our property.Ok.

Welcome to BP, the community here is outstanding!  

Assuming a 5% yearly increase in value (which may be conservative), in 10 years time, the value of the house should be $1.25M with an outstanding balance of $174k, i.e. equity of $1.075M.

The owner has cured the amount outstanding and the loan as been reinstated - - happens all the time, especially in high FMV properties with low loan balances.

In other words, if there was a foreclosure and the property sold for less than the total of all the outstanding liens, first the 1st lien would be paid in full, then any leftover funds would go, in order, to the remaining liens.