Doing this will indefinitely defer paying tax on profit or depreciation recapture. 

Quote from @Leeling Chew: It doesn't matter who pays the bills.

When you go to sell, you're subject to tax on the amount of profit between your adjusted basis and sale price, not your purchase vs sale price.Recapture is not repaying the depreciation.

Speak with lenders - and consider that although they might agree they could lend to you today - they might not be able to when you need the loan.Unless the existing debt has no due-on-sale provision, there will always be a risk of the underlying loan being called.If it were to be called due:1.

@Frank FloresInvesting in delinquent tax sales in Houston can be profitable, but it comes with risks.

Read your mortgage paperwork for the due on sale clause. 

This will also allow you to avoid taxes on the sale.

(You say it’s worth about $100k more than you’re paying so figure an extra $15k.)Maybe you’d be better off partnering with the parents unless they have zero interest?

When you pay off a mortgage you pay the interest for all the years you didn't own the house?!?

@Christina Galdieri A 1031 exchange cannot be used for the sale of a business itself, as it only applies to the exchange of like-kind real property used for business or investment.