Sounds like you’ve taken the right steps so far by giving formal notice to vacate.

This sounds like a great property.

Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.

The resources and books you mentioned, like the BiggerPockets Ultimate Beginners Guide and The Book On Rental Property Investing, sound like excellent starting points.Prioritizing financial stability and eliminating debt is crucial, and I agree that a solid financial foundation is key to successful investing.

Hi Joshua,It sounds like you’ve got a solid situation—congrats on positioning yourself so well!

Sounds like you guys have the potential to be an amazing property management team!

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if  So it sounds like im not missing anything on the risks, from your perspective at least. 

It sounds more like you want to do work for a short time and have success without knowing much.

That all sounds horrific, but how do you inspect the property while at the auction? 

You state the numerator is “units in the area” but that sounds like existing units, which is what’s calculated in Step 2.