The 1031 allow them to cut the tree's roll all that tax deffered money into an income producing property.. it was sweet.. but hard to convince old farmers who are so afraid of paying tax in the first place.. or live in their old shacks and are sitting on a few million dollars of timber and do nothing with.. it..

I understand, it seems like a sexy play to live in one side and rent out the other with a sweet FHA loan to add the cherry on top, but let me make a strong case against it. 

I was looking at AG loans and they seemed pretty sweet with loooottttssss of paper work, but not as sweet as residential lol. 

Lastly, Any input on the sweet spot for home sizes?

Your interest rate for your mortgage will be cheaper and make you money in the long run if you wait.Experian, Equifax and Transunion all provide "what if" scenarios meaning you can see what your score would be if you paid down your cards to a certain percentage of the available balance (28% is the sweet spot) or paid them off entirely. 

Pretty sweet huh?

You need to find the sweet spot in your area. 

They were sweet enough to do it without asking for anything in return, but I think as a landlord you will figure out if a tenant of yours is trustworthy enough to be in this position for you.Like the others have said, I still think there is some conflict of interest, and I wouldn't recommend keeping any management agreement for a tenant you inherit, but it doesn't mean you can't have a successful on-site PM after cultivating a good relationship over the years. 

I found the sweet spot when I came across "Petitions for Probate" those are the ones that will have the info I believe you are looking for.

how does it affect you.. its a 2 mil property your paying 2 mil for what is the upside.. unless of course your low balling and taking equity from the sweet little old lady :).. don't see your point in all of this.I dealt with this in the Timber business were many of my clients owned timber with next to zero basis.. we did a 1031 on the timber deed.if she lives there I don't think she can 1031.she can do a charitable remainder trust but really she is too old for that.and I think there are things called generation skipping trusts..