Understood!

You do this to:Confirm they understood what you wanted in a rehab, to what level.

Since your a RN I’m guessing you don’t have a lot of free time which leaves you with having to find a deal along with proving to the investor that you have a good enough relationship with a contractor that the job will actually get done.If I miss understood the question sorry for the long response.

Thanks for all the contributors to this thread, tax code can be really confusing and I am now doing my first 1031 exchange (I am all about learn by doing), but to make sure that I understood some of the information provided here.

While shopping for homes, I think I inherently understood my strategy, but it took a while to really write out what that strategy is. 

I would like to think that, while you wouldn't have to explain TP to me, you would have to tell me that you've understood all the risks and you've got a plan to mitigate them such that my home will not blow up. 

I never understood that.

thanks @Christopher Phillips and I actually did read that article prior to posting my question. if I understood correctly, it's suggesting to reduce the sales price by the amount of the seller credit and just not record the seller credit?

Additional note if not understood, these are federal taxes.

It is a great read written in terms easily understood and gives the real truth about this and many other topics.