Let her move out first.....I just got approved for condo conversion, and I totally understand that sense of relief ...Best luck....

Because instead of your rent money going off into the wind, it’ll be going toward adding a property to your portfolio, giving you a place to stay, and it may add some additional relief knowing that somebody else will be paying rent that will contribute to your mortgage .

This can have massive effect on cash flow, let's say:Total Income:                                $900Expenses (not inc. mortgage):     $451.43Taxable Income:                      $45020% Tax:                                 $90(There is a tax relief on mortgage interest of up to 75%, for simplicity I did not factor this in)Total Expenses:                       $687Monthly Cashflow:                   $212- $90  = $122Annual Cash Flow:                   $1,464Total Cash Flow after 10Years $14,640       (nearly $11,000 difference) Profit on sale (not inc. tax) $16,370Total Profit:           $31,010 after 10 yearsThe same amount of money in a stock that pays a 5.6% (tax-free) dividend compounded would be worth $58,630 (not accounting for appreciation) Profit: $24,630 Buying, renovating and selling a house seems like a lot of extra work for $638 a year. 

You won the judgment.....but good luck actually getting the $$ from me".........Stall and make it as hard as possible for them to actually see any $$.... they probably have other debt collectors breathing down their neck, so delay any "relief" for their other baggageOf course that will hurt your credit and be on your record, but at the end of the day I might just eat that just to do pay these people

The strategy itself is sound-with Portland having a housing shortage and no real signs of relief, I think that in the long-term, adding more housing to land you already control is a great idea.

________________________________________________________________Inspect, and possibly change out HVAC filtersClean kitchen sink disposalClean range hood filtersInspect your fire extinguisher(s)Test smoke/carbon monoxide detectorsTest garage door auto-reverse featureRun water and flush toilets in unused spacesCheck water softener, add salt if neededGive your house a deep cleanVacuum your refrigerator coilsTest your water heater’s pressure relief valveReplace batteries in smoke/carbon monoxide detectorsCheck the exterior drainageClean out guttersInspect the exterior of your homeGet your air conditioning system ready for summer; consider servicingRepair/replace damaged window screensClear dead plants/shrubs from the houseCheck trees for interference with electric linesInspect roofing for damage, leaks, etc.Test your electricity to the extent that you canTighten any handles, knobs, racks, etc.Check all locks and deadbolts on your doors and windowsCheck caulking around showers and bathtubs; repair as neededRemove shower heads and clean sedimentDeep clean and inspect the basementCheck grout in bathrooms, kitchen, etc.; repair as neededInspect plumbing for leaks, clean aerators on faucetsTake care of any insect problems you may haveClean and repair deck/patio as neededClean out window wells of debrisCheck and clean dryer vent, other exhaust vents to exterior of homeClean garage________________________________________________________________Do the landlords on this forum perform any of these tasks? 

Figure out the best way to approach the subject and try to find the point point and the best way to relief it for her.

so their requirements to defer all tax are to purchase at least $230K of real estate and use all $230K (or whatever there is after any debt relief) in that purchase.I think the answer to your clients situation might be to go ahead and 1031 into the $230+ property you described using all cash.  

We have obtained relief from stay.

Your job is to make a connection, develop a relationship, demonstrate that you are trustworthy and show them a path to a better way to benefit from relief or any remaining equity.