Some contracts have a curing period where the defaulting party can make right by the contract, and cure the breach.

If you don't want the restrictions imposed by the IRS when you do an exchange, and if you don't like the need for a trust managed by a third party who oversees your funds and charges you hefty fees for that, consider the monetized installment sale.

I already have a few that both parties agree on. 

They send the worst third party contractors, authorize the least amount of repairs, and take an unacceptable amount of time to dispatch folks and make decisions on how a repair/replacement is to be handled, while your tenants are without their appliance what seems like FOREVER.

Note that you can open an estate as a third party --- had to do it from time to time when I represented lenders and the borrowers died.

I plan to use a 3rd party PM company and reclaim the on-site PM's unit and office as two units for lease.

The good thing is that the 2 original houses have equity and the third house would have equity too.House 1 93k owed Arv: 125k950/mo rentTax$2,700/moInsurance $1,200/yearHouse 2145k owed Arv: 205k Rent $1,600/mo Taxes: $4,500/year Insurance: $1,200/year House 3 200k Arv: 275k No rental income Taxes 7,000/year Insurance $1500/year So the total costs would be about 438k.

My partners and I acquired some great real estate in a small downtown and plan to develop a nice mixed-use project to include retail/restaurants on the first floor with condominiums above that on the second and third floors.

@Ron Masters, The 45 day list is an instrument "in writing" between parties to the exchange. 

However in January the condo on the third floor had pipes bust and flooded my property.