The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

OF course, you may have all this stuff figured out, but the original post was vague.

(I am starting investor, please understand)So many guys are buying in second-hand market, when original can not cover their mortgage payment because of the depreciating rent, and let go of their property at great value.

You don't ever want to double book and have to cancel one of them.And the guest giving a phone number in the first message like in your original post is against the rules and the guest knows it. 

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!

Why Jacksonville, are you originally from there?

Originally, the entire price of the academy would be refunded if you invested with RTR, but from what I can tell that has now dropped from 100% to only 90% refund (not sure why they dropped it so shortly after launching).

It by no means is an exhaustive search but I also haven’t seen any co-op communities selling for 50% of comparable condos.I also know lenders that have originated loans for the co-ops in Laguna Hills and I was also reading how Fannie Mae buys mortgages issues to co-ops so it sounds like there’s a market for both qualified and non-qualified loans.

Property was originally listed for $1.2mm this past year they’ve done multiple price decreases to $699k.

Originally posted by @Joe Kim:There are many ways to approach this difficult task of convincing a owner or landlord to rent to you as an investor ONLY to sublease (aka Master lease) the home to furnished short-term rental.#1 NUMBERS GAME:  It's not easy.