Speak with lenders - and consider that although they might agree they could lend to you today - they might not be able to when you need the loan.Unless the existing debt has no due-on-sale provision, there will always be a risk of the underlying loan being called.If it were to be called due:1.

This home is for sale, circa 1920s. 

Found a property which is Sheriff sale, really promising.

I had the initial call with a PadSplit sales person, but I wanted to talk to somebody who's actually doing it to get their perspective and advice.

Selling costs would be 8-10% of the sales price but there should be an estimated proceeds sheet that would show you costs.

You owe two taxes:A. capital gain tax on $150k ($500k sale - $350k purchase)  PLUSB. depreciation recapture on $100k of depreciation taken.Now, let's assume that you messed up somewhere along the way, and you only took $70k worth of depreciation instead of $100k.

However, once converted to personal use, you can no longer claim depreciation, and the accumulated depreciation will reduce your adjusted basis, increasing your potential taxable gain upon sale.

The other part sounds like it was a rehab and now held for sale, which does not qualify for 1031 Exchange treatment. 

He will pay sales commission but get his BHA back and have lived for rent free. 

Please no sales pitches.