I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...It's too small of a percentage of loans for that to be where the bottom falls out.

It feels premature to sign a purchase agreement without agreeing on a price or even seeing the property.

There are dozens of problems you can face as a landlord, and I feel it's important to have a plan for all of them.

If he doesn't need the cash now, you could also negotiate a split you're comfortable with to get him the return you and he feel he should have at the point you refi when the balloon payment comes due. 

Feel free to drop a comment or send me a message.

They cited insurance reasons, which could very well be true, but many residents felt it as a big "f you" Now folks from outside the community could argue this was an entitled stance from the residents, to feel they had access to this private land when they didn't, and that on the face is certainly true.

I'm feeling that I am being milked and preparing to get my attorney involved if we don't settle this soon.

Feel free to ask anything, anytime.

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

However, when I go to meetups and I talk with people who are new at real estate, they often don't know where to start and they feel overwhelmed.