They have a place they could potentially close on by the end of the year, but its new construction and the closing is subject to change based on the builder (and the area was just in the path of Beryl, so that timeline could have been impacted), so if that's the only thing they're thinking of exchanging into, I'm inclined to suggest they consider consuming the losses now for simplicity's sake, especially if the exchange timeline can't be guaranteed to work out.

That's the rub everywhere not just in RE. 

We use Regions Bank - not sure what state you are in but I think they are just in the Southeast.  

- I would also check the "straight pay" rental rate in the area as well just in case you can't get a Section 8 tenant to rent the other units. 

-Justin

Quote from @Justin R.: I was living in the Los Angeles area as well when I started my "Out of State" investment journey.

@Justin R. did a higher end mobile home flip in San Diego quite a few years ago (6 years ago?).  

We needed a new queen mattress for a just in case situation.

really depends on who much capital you have.those with small amounts of capital >100k  might invest with a HML who does not put you as a bene on the loan so your unsecured just in the deal. 

Quote from @Justin Brickman: I would go with option 1.