The loan officer says the refinanced amount would be 75% of the purchase price and not the new appraised value after rehab.In this case, is it a bad idea to transfer ownership of the duplex into my family member's name and then purchase the duplex back but this time financed? 

A lawsuit, divorce, bankruptcy, death, - all could really jam up things and cause you to not only lose your 1031 exchange but the money they are holding as well!!

What’s your anticipated hold period?

I also suspect you signed a tax proration agreement wherein you agreed any discrepancy in the tax payment would be handled between the buyer and seller and hold the title agent harmless.

Why would someone give you any money and more so, why would you take someone you know's money when you have no experience, no game plan, and a misplaced idea to buy distressed which is the hardest thing to buy and salvage for new investors?

On the first deal, my name was on the title, hold 50% of the property, but I found it's annoying to be on the title.

If you are located in CA and are not investing there (good idea to stay out IMHO) then you have the entire country to choose.What attracts you to Indianapolis?

Just make sure the lease holds everyone liable for 100% of the rent, not just their portion.

@Shane Boyle Hey Shane, Great idea!

I have not yet notified the buyer who clearly has no idea of the restriction.