You are purchasing an interest in a company that owns real estate.Over the last 15 years special products have been codified by the IRS to be 1031 compliant but fit the category or fractional passive investment. 

Being a real estate agent on the side, or a wholesaler on the side, etc, rarely works out as those are jobs, not hobbies, and you'd be hard pressed to be competitive if you're only working a fraction of the hours a full-time agent would be, for example.I'm a fan of buy and hold, personally, and it's a great way to get your hands into a lot of aspects related to REI.

You can have thousands of leads in an hour for a fraction of what you are paying the VA. 

You'll also have to recapture depreciation.Another option would be to sell it and 1031 into a passive cash producing asset with a long lease life - a NNN property or a fractional opportunity that still qualifies for 1031 treatment. 

So is changing sectors from residential to commercial or passive fractionals - all depending on th individual facts of your case. 

It is my understanding that you CAN exchange from sole ownership to a fractional interest, but there are rather stringent regulations (https://jordanramis.com/resources/articles/§1031-e...)4.

They seem to offer full notes or fractionalized interests in them as well. 

You yourself are taking on just a tiny fraction of that sec 8 tax burden since everyone else is paying for it too. 

It also depends on if that’s all his money total or just a fraction.

@Virginia HedgesSince NJ is an expensive market, house hacking could be worth it even if you can't live for free but paying a fraction of your current rent/mortgage.