Selling a primary residence and then buying it back as part of a 1031 exchange could raise red flags with the IRS.Your parents have a valuable opportunity to defer a significant amount of taxes by utilizing the $500,000 exclusion on their primary residence.

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.

any lender wants to know how you plan to service the debt.

Quote from @Charlotte Wilson: Maybe I am overthinking this but when I look at properties to purchase that I plan to rent out, how do I make sure I am including all the potential additional “cost” besides the mortgage and property taxes?

This change emphasizes that under specific circumstances, courts may "pierce the corporate veil," holding individuals personally accountable for the company's debts and obligations. ilga.gov2.

Buying at the mortgage balance (~$150K) positions is under the fair market value and can trigger gift tax rules.

It seems the profit would cover taxes, and you would have more capital to do other stuff. 

Quote from @NA Ludkey: @Jaycee Greene  No he is not a dependent on our tax return any longer. 

Hey @Scott Chauncey, for the 2 SMLLCs, as long as they are disregarded to your personal tax return you can have them within the same QBO.

Our mortgage at the moment is around $2100 including taxes and insurance, this would obviously go up if we do refinance.