Your K-1 reflects your membership interest in the SPE and has nothing to do with "his" existing LLC. 

Take that $20k and use a portion to join the local REIA Real Estate Investor Association meeting and get a membership, find a local mentor and look for smaller deals and/or a partner. 

The Pro membership is well worth it.

I have found several more contacts now using bigger pockets pro membership... and am hoping to grow those relationships as well.

Also, if owners have a membership, renters can take advantage of weekly passes. 90% of renters ask for this great attractive. 

The reinvestment requirements of the 1031 exchange are still in force - you must purchase at least as much as you sell (that is the 85K) and you must use all of the proceeds in the purchase (that is the 85K of cash proceeds).So you will purchase the property from the intermediary using $85K of exchange proceeds and then either bringing a new loan for the remainder, assuming the balance of the loan currently on it (from the family member), or simply bringing cash of your own to the closing.Your intermediary will sell the property to you (or hopefully if they're thinking about it they will assign you the membership interest in the single member LLC so  you avoid a second closing and transfer tax and you get a free LLC out of the deal) and pay off the mortgage they had to make to the family member.You cannot accept cash from the closing of your sale without incurring a tax event.

This can mean you must join their association, membership inside scoop.

If you hold your membership interest in said LLC via your Trust, then upon your passing, your interest passes according to the Trust agreement.

That is what got me started, but I would suggests that instead of buying any more of their training, you get a Bigger Pockets Pro membership and start networking.  

Well worth the membership fee, in my opinion.