I am a newbie and am trying to make sure that I deal with sellers ethically.

I sincerely hope to have someone who can show me the business, mentor me and in the future expect loyalty and great business ethics from my side.

If this is true and LLC 2 is truly a disregarded entity, then the acquisition of the replacement property by LLC 2 will be treated as if it was acquired by LLC 1 and will qualify for tax-deferred exchange treatment under Section 1031.The $500,000 cash that was not invested is considered taxable cash boot.

To me this is a bit of gray area - pertaining to business practices and moral/ethical standards.

You've gotta use your head and be ethical.

The question was more with regards to the ethics of choosing to ruin one tenant's personal property over another's when a reserve fund should be set aside to fix a problem associated with the landlord's property that is clearly inconveniencing his tenants.

So, as long as you move out and rent for a sufficient period of time in order to demonstrate that you did have the intent to hold for rental, it will qualify for 1031 Exchange treatment.

You need to see how you communicate, things in common, are they honest, judge integrity, you may not need the most successful you may want more knowledge and experience with an agent that doesn't have to beat their head in to stay afloat, they may have retired from another profession so they may have time to take more interest in you.You're looking for a personal business relationship, not a girl friend or drinking buddy, but someone who has ethical standards, knows the business is current understands investing aspects and that has time to devote attention to you.

Both of those business models can be very complimentary (if operated ethically).

There are definitely gray areas of wholesaling that may not be ethical or legal, but that is in every state.