Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.

All deposits were made directly to the builder/seller's escrow account, with the seller as the beneficiary (please refer to your escrow letter).I am committed to helping resolve this issue between the seller and buyer.

They ended up with no help, and less money in their bank account.  

•Set up your EIN and operating agreement.2.Set Up Your Business Bank Accounts:•Open 3–5 business bank accounts to give your money purpose:•Income Account: For revenue and deposits.

I have the details in place, but need to make sure I fit within regulatory and accounting laws.

How do you know there are funds have you seen actual bank accounts ?

Next, I'd get my electrician in there STAT to give me there quote to get it done. maximum scope, account for all variables, not a "hopefully it's just..."

There are some accountants out there who say that the very act of doing a 1031 exchange is an attempt to avoid tax and so a 1031 purchase from a related party is a non-starter. 

@Greg StrunakA good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

I'd hate for a temporary dip in the quality of the tenant pool to be giving my landlord "spidey sense" false alarms on account of taking an extra month or two to fill a unit.