We saw active termites at the exterior corner of this wall (below the window, next to the patio door). 

It seems easy to compare that property to an apartment but luxury apartments come with amenities (pools, gyms, patios, trash services, etc.) your property won't.

Even a postage stamp sized patio or yard can be very attractive to midterm guests.

I ALWAYS tell the wholesaler to make sure they are transparent with the end buyer and their lender because MANY times if they aren't transparent about the double closing then the underwriter will catch it last minute and bring up the fact that the current deed holder isn't the wholesaler and that will kill the deal many time.There are some underwriters that don't catch it and things go smoothly.Then there are some conventional lenders that aren't familiar with the process and think it's fraud and won't lend on it.So sometimes I inform the wholesaler to let the end buyer go direct with the seller, do a single closing, Increase the purchase price by the amount of the wholesalers spread and put the fee on the SELLERS side of the HUD because the lender WILL NOT pay for the wholesalers fee, but if it's wrapped into the initial AB contract (now between the seller and end buyer) then the wholesalers spread isn't brought up, it's merely a line item on the SELLERS side HUD and nothing to do with the conventional lender and it will close "100%" of the time because it's a normal ordinary closing to that lender then.

I've left bicycles on my front patio overnight plenty, no issues.

Because you can leave more money inside the 1031 where it will stay tax deferred.and the 3rd option (just because I'm a Goldilocks guy) is to not take a commission (you don't pay ordinary income tax). 

You do not, however, appear to want to wait for ordinary market appreciation.You are left with buying properties under market price.

Just a few comments - if he withdraws or takes the distribution from the 401k it is taxable as ordinary income and not sure what impact that would have on his tax situation.  

You'll get taxed at 25% ordinary income rate at least under current laws.

You would pay taxes on that $5k which would be taxed typically as ordinary income if you are a LLC.Next year you sell the loan for $60,000.