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.

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.

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.

Plus if any of the materials are damaged, wrong, or of low quality you're going to be the one who has to deal with returns or exchanges. 

So I'll wager that if it all does start to unravel it won't be until after a few deals go sour and people start suing each other. 

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. 

Would have been a good title for a forum thread for people looking to do direct exchanges.

(As most 1031 exchangers are.).

@Julian Martinez The good thing about your position is that if you decided to sell the property you can qualify for the 121 exclusion, and qualify for a 1031 exchange.

PayPal is the only commonly used app in this country that handles transfers between countries and it is quite expensive.I've chosen wise.com for my international exchanges.