The 1031 exchange rule to defer your tax is two part 1) reinvest all your proceeds and 2) purchase a property (or properties / DSTs/TICs) with an equal or greater market value.  

I would hope that they are not so one-sided as to only value their clients wishes, but who knows?

Looking for a house we could house hack, had an incredibly low interest rate on mortgage and house has increased in value about 42%, an estimated 180k in equity.

For example I would rather buy a property for a $100k discount that may have negative cash flow of $500/mo month for 3 years than pay market value for a property that cash flows $200/mo.

I think it's just a matter of being a bit creative and finding opportunities to add value to a property.

Are you buying amazing deals or are they closer to market value?  

Why not take his name off the LLC and put it in your name now while the LLC has $0 of value (or whatever nominal amount your articles of organization or operating agreement say that you contributed)?

Let's say you paid $250k for it, and it's now market value $500k.

Platforms like BiggerPockets, local REI meetups, and Facebook groups can connect you with investors seeking opportunities.Joint Venture Partnerships: Consider partnering with a seasoned developer or investor who can provide the capital while you contribute your vision and operational effort.Hard Money Loans: If you’ve identified a property, some hard money lenders may fund the purchase and development based on the future value (ARV) of the project.Crowdfunding Platforms: Sites like Fundrise, Groundfloor, and RealtyMogul cater to real estate developments and could be a great way to gather capital.Seller Financing: If the land seller is open to it, negotiate terms to finance the purchase directly with them.2.

One was purchased a  few years ago by an out-of-state owner who has decided to sell and has doubled in value.