She's asking $700K.My question is how do i start the process of obtaining this property without having to sell and 1031 exchange my current duplex.I have not much in savings, and no where near 20-25% for a down payment for the new property.

There are multiple ways to utilize equity without paying taxes, such as cash-out refinances, HELOCs, and 1031 exchanges, making appreciation a powerful wealth-building tool.Many people lump all of California into one bucket, but it’s a massive state with many distinct markets.

A 1031 exchange is NOT available for owner occupied property so that’s the bad news.The good news is for owner occupied primary residences, for married couples, the first $500,000 of pain is tax free.No need to worry about a 1031, live in the house, sell it, use the $500,000 exclusion and you pay KP tax on whatever profit may exist,2.

(They both shrink your pool or buyers and combining them really shrinks the pool.)Assuming you don’t plan to do a 1031 exchange you’ll also pay higher taxes if you can’t spread them over two calendar years, but not much. 

Consult a tax professional to understand future implications.1031 Exchange: If you sell this property later, you can defer capital gains taxes by reinvesting through a 1031 exchange.4.

My exit strategy is to sell off my multi-family rentals and exchange them for single family homes in desirable neighborhoods.   

The house will still need to appraise for the amount of the loan if you offer a higher price in exchange for repair money from the seller.

I didn't realize, one has to hold for a year to do a 1031 exchange. 

(As most 1031 exchangers are.).

It’s an interest free loan but it’s not a gift unless you die in less than 27 years while still owning it or it’s 1031 exchanged property.