At that point in time, we can just list the property and sell it. we have long-term capital gains rather than short-term capital gains, we would have probably experienced some appreciation during that time.

This is fantastic for new and experienced

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

Residential conversions are costly, so working with an experienced architect and contractor specializing in adaptive reuse is critical.

If things get tricky, consulting a local attorney experienced in landlord-tenant issues can help you handle the situation properly.

Your clients should focus on properties with significant equity potential and work with experienced contractors to stay within budget and timeline—especially with borrowed funds on the line.Avoiding Bad Deals - Encourage them to work with experienced agents, contractors, or mentors and always run multiple scenarios, including worst-case outcomes, to stress-test their numbers.Reserves - Advise your clients to keep a reserve fund separate from their loan for emergencies, unexpected expenses, or delays.

Regarding the payout inefficiencies, I remember the nightmare that some folks were experiencing with state unemployment benefits during Covid.

Are there any local meet ups or websites on where to find more people who have a moderate level of experience meaning they are  somewhat experienced but still looking to collaborate and network with more inexperienced investors like myself.

We experienced real estate investors tend to look at most “guru” type training/mentorship as, at the very best, inadequate to provide the new investor with a reasonable pathway to success.  

Many buyers in this market are experiencing challenges.