Great news!

Proper documentation and consistent reporting are crucial to ensure compliance with IRS requirements.

It is good news, indeed.

@Joe R.Good intel and good news on pricing for pools and trusses, thanks Joe.

That's not to say you can't do well there, but I'd encourage you to look at Belton and Temple (which can also be very rough and block to block) rather than Killeen.The good news is that there continues to be serious population and job growth in the area.  

Document all of what you do if you are going to get it done for them, and/or if you cut them a check then make sure it is in writing that it was all done and they cannot come back to you at a later date asking for more money/mitigation.  

BUT there was nothing preventing DOCUMENTATION.

If you or him are just giving each other money with no legal documents in place so you can scoot buy and get in, then good luck to you both.

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.

Definitely not doing the work myself so it sounds like resale value won't be impacted if I have a licensed person fix the issue and provide evidence/documentation that it was done correctly.