Right now I am attempting to combine both loans but the borrower's don't have that much money.

Does it have to do with your knowledge, cash on hand, relationships built, or a combination of all the above?

Or some combination of the three...The second position lien bit is a function of the reality that if another entity participates in the financing package, he/she/it is unlikely to accept anything other than first position lien, which pushes the owner into 2nd.The only other option (and I say that with a laugh since there are only about a billion  options) is either bridge financing, unsecured financing, cross-collateral with or without blanket notes, etc.

Based on my reading at BP, for a 1031 Exchange, I know that I have to purchase a Replacement Property for at least $340K and I have to put all the proceeds $170K into a replacement property purchase to defer tax.Question #3: If I can provide additional $30K to combine with the $170K (a total of $200K), does this mean that I can only afford to purchase a Replacement Property between  $800K (with 25% down) and $1M (with 20% down)?

And if you have decent credit already, combine that with your "projected income" and bam you can qualify.

If these properties sell for $500K combined, then you need to purchase at least $500K of replacement property to have a tax free exchange.  

In 8 years when you need to expand further you can move your company out, rent the space you used and combine it with the rent you're receiving from others units.

All that said even assuming the long-term rates will rise, the cap rates are a function of the local economy showing by how much you anticipate being able to raise your rents over your holding horizon to meet your IRR target, that is why an urban high-rise apartment building in St.

That's a horrible ulcer-inducing combination.

Opens camera at --> Stays open until I take 10 pic--> combine 10 pics and format into a grid --> convert to PDF --> text or email --> delete picks from camera.