And it can work really well for you as long as you pay attention to the statute requirements.In order to defer all tax you are selling investment real estate and buying investment real estate of at least the same value you sold. 

Ignore it, for real...it's baseless. 

2) How many hours/week do you really want to commit to for real estate?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

You can also hire a real estate attorney off of UpWork or Fiverr to review the documents and give you an opinion just to be sure.

You're paying yourself back interest, the principal is out of the market and not going down, AND you're using the funds to build equity in real estate.

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

@Destiney E Goins - Welcome to BP and real estate investing, Destiney!

I'm new to real estate and have recently become interested in wholesaling as a way to get started.