Would the IRS allow them to benefit from a 1031 Exchange if they would be "swapping" a million-dollar rental for one that is much lower in price?

The home values are still lower than pre-pandemic and far fewer multiple offers.Vegas was the big topic among my local meet up circle.

However, if you intend to work with a hard money lender or utilize a short-term loan product, you're on the clock for repayment, which can be stressful if things go sideways. 

If I were you, I'd pass on this property and look for something else (and I suggest a 3 BR) under $80 that you can put a little rehab into, unless insurance pays your family member a bunch of money and they accept a much lower price. 

She then said it was just too stressful and she couldn’t do it.

There's usually a good reason why the entry points are lower.

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

In category after category, larger condos and higher price ranges are selling better than smaller condos and lower price ranges. 

We have zip codes that have lower and and higher end areas within the same zip so not a good marker to use.Going along with that a lot of the neighborhoods are very street by street or change pretty quickly by block, so you have to be aware of that.

Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.