People take the easy route and in exchange get crappy returns.

you can use the proceeds to purchase two different properties and to secure the full 1031 Exchange Benefits, you need to ensure the combined value of both properties is equal to or greater than the relinquished property, less reasonable closing costs, which does not include the payoff of a mortgage. 

Nobody is asking for/pushing for a test, which is precisely why I am inquiring about this topic.

You could then take that money and either pay down debt, or roll it over into a 1031 exchange on your next property or possibly two properties?

1031 exchange or carry the note

Damien,For a deal this size with this profit potential, here's what I would do:I would put together a list of 100 properties you think would work well for your partner, write a sales letter with the headline "1031 Exchange Property Urgently Needed" or something to that effect and mail it via FedEx Express Saver.

I started my journey into wholesaling about a month ago.I have fund my farming area and have been driving for $ the last couple of weekends.I have managed to generate about 60 properties now its time to do the work of sending out the yellow letters.I will keep updating my results here and if anyone would like to connect in Phoenix area , DM me and we can exchange ideas.

We have done a tremendous amount of research to date, but are hoping to find some folks who are already succeeding to lend us some wisdom in exchange for shameless food based bribery.We have a solid background in property rehab and estimating and one of us knows a little about the law, but we could really use some advice from those of you who were actually able to stop researching - and start investing.Are there any investor-friendly agents or investing pro's out there who would be willing to set up some time to chat?   

in scenario 3 you can pay tax or do 1031 exchange if you wanted to purchase additional property with the funds.Don't forget you'll be paying 25% depreciation recapture if you sell, regardless of how & when.I hope that helps.Good luck,Joe

I would like a recommended Qualified intermediary in the Austin TX area who can help me with a 1031 exchange.