The big ones are raising capital, underwriting / finding great deals, or managing assets.

The 1031 can defer capital gains taxes, but it’s crucial to identify a like-kind property and complete the exchange within the IRS timelines.

Also, don't dismiss paying for capital raising.

The problem is their capital is tied up, so I've been asked if I would like to purchase the house and then lease it back to them.Here are some pros/cons that I can think of:Pros:-We haven't agreed to a rent amount, but it will be above market rate.  

Capitalism is all about meeting wants and needs. 

There are various ways to do this in QBO, but this is how I typically do it for myself and my clients in the Chart of Accounts.Real Estate Owned> Land> Buildings> Closing Costs> Capital Improvements> > CapEx 5 years> > CapEx 15 years> > CapEx 27.5 years> DepreciationOnce the tax return comes in I will adjust for depreciation.

Gained capital via the assorted down payments.

So that means if my downpayment is $80,000, $30,000 is really going to affect things:1) Capital raised.

@Jeffrey Zhou What you are describing is that DBI receives an anonymous complaint and sends an inspector who subsequently issues you a Notice of Violation (NOV) requiring you to abate work done without the benefit of permits.So in that situation, if the work to legalize your unit is significant enough to create a habitability issue you may need to perform a just cause eviction (temporary only) that allows you to displace the renter in order to perform the capital improvement work. 

@Sam Kay, Using a 1031 exchange from a property with higher risk or actual repair costs into a property with less risk of capital costs can be very helpful to you.