Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

The high property taxes takes out most of the profits. 

He is very good about deductions on tax returns so his income looks negligible and of course banks wont talk to him about loans.

Don’t forget to pay your state of OH income tax, even on the formerly tax free money you are transferring out of NV in to a state with income tax. :-). 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

(d) retained earnings from depreciation use to lower tax burden. 

So obviously being in foreclosure, absentee owner, tax lien or any of such "distress" doesn't make you motivated.So what you need to ask yourself is "how do these software determine who or what is a motivated seller right?

Also Seller hasn’t paid property taxes in 2 years which is a sign the property is in distress.

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.

Take the tax free sec 121 first and then 1031 the leftover.