The agent is just doing the best for his client.This is a duplex, so it will be appraised using the Economic Value - - Annual GSI x GRM, typically 10 is the starting point, so FMV would be:(850+875) x 12mo is 20,700 GSI x 10 is $207k - - the appraisal will then add and subtract from there on condition issues. 

Subtract off:1) Selling costs2) Holding costs3) Repair costs4) Money costs5) Purchase costs6) Desired profit.What's left is your max purchase price.In your case, you have zero explicit money costs.

Make sure that you subtract repairs needed from that amount before placing an offer.

Subtract what you owe and what's left is yours.

Example:Property Value: 260k $260,000 x .65 = $169,000 .. (65% of actual market value)Repairs: -$15,000And also I would have to subtract my assignment fee and also allow room for any closing cost or fees a end buyers has to pay at closingMy fee between 3k-5k (depends on different factors) So with that said I would offer between 140k - 145k this would include my feeThe extra few thousands I would allow for my end buyer to keep again to compensate for any fees at closingsAll opinions are welcomed here !!

The loss to lease is usually a positive number subtracted from the Gross Potential Rents. 

Subtract that from what you sell the property for, and you have your profit. 

I was just going to factor in the cost of plumbing and electrical and subtracting that from offer. 

., I get that the building isn't a cash cow but, it'll still cash flow several hundred a month even after we move out in a few years (subtracting 30% for the above costs) as our unit currently rents for $1025/month.

I don't believe she should have any tax implications but would like a 2nd opinion.Original rental property bought for $255KMortgage remaining: $166KSold this rental property for $380KSo in essence, her net profit is $125kBought a rental property through the 1031 exchange for $127kSo based on the above, she should be okay BUT here is what I'm not sure about:When she sold her property for $380K, $166K was used to pay her mortgage and $214K went into her account with the Qualified Intermediary.The purchase of the rental property as mentioned was $127K and with closing costs, fees, etc the total came out to $150K which they subtracted from the $214k in her account.So she is left with $64K.