To achieve REPS status you need to be actively involved in your rentals.  

But, the seller will never close a sale until the buyer releases that claim and withdraws the affidavit because a new buyer's title company will not issue a title policy and the new buyer's mortgage lender will not make a mortgage loan.Its not worth doing in this case but when real money is involved it is pretty effective.

Here’s what you need to consider:1.Related-Party Restrictions•The IRS generally doesn’t allow 1031 exchanges when both the sale and purchase involve related parties, unless both properties are held for at least two years after the exchange.

“How” they live together is more involved.

Maybe they have other properties they are interested in selling without a Realtor involve.

As the economy shifts, there will be new ways to grow your portfolio, but success will require staying nimble and informed.Bessent’s commitment to cutting the federal deficit involves a mix of spending cuts and revenue adjustments, which could directly affect government-funded housing programs and infrastructure investments.

In addition, the book keeping and legal involved with a syndication process is greater than if partners are not involved.  

It can be a bit of a juggling act, but it’s a method some investors use to grow their portfolio without waiting years for equity to build.I guess what I'm saying is, it's not just about waiting.. it's about finding creative ways to leverage what you already have.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

If real estate is involved, separating it into its own LLC before the sale can simplify the process and make it easier to leverage a 1031 exchange.This post does not create a CPA-Client relationship.