Proc. 2002-69I found this guidance and thought I would provide a summary:It was issued to remove uncertainty surrounding treatment of an entity owned solely by a husband and wife in a community property state.Essentially, if that entity is a "qualified business entity", and the husband and wife choose to treat it as a disregarded entity, the IRS will respect that classification.On the flipside, if they choose to treat it as a partnership for Federal tax purposes, and file a partnership return, the IRS will accept that the entity is a partnership for Federal tax purposes.A business entity is a qualified entity if:1) The business is wholly owned by a husband and wife as community property under relevant laws,2) No person other than one or both spouses would be considered an owner for Federal tax purposes,3) The entity is note treated as a corporation under Reg. 301.7701-2

@Nathan LegerTo me it was all about visualizing myself at age 65… try doing that, if you think you’ll be content sticking with the rat race and being comfortable then just do that.

If you find out that this is not the case for this property and your long term goal is to completely reshape the property to the point where there is no visual remembrance of how it once was, I say move forward with the purchase.  

"inspection is limited to a visual inspection" which means they are not opening walls, pulling up carpet, taking things apart to inspect further, etc. which would obviously be invasive to the seller's property.

Thanks again for your reply and the visuals are very helpful. 

Will do get another rounds of inspection done and start the treatment. 

You can’t receive the cash or it will spoil the 1031 treatment.

Buying through cash or leverage has no impact on the tax treatment.

I found this site years back that gives a compelling visual of the wealth distribution in The United States:L-CurveI am curious what others think about the distribution and the way the data is presented.

One time I made an inquiry as to why, zillow replied that they have humans doing checks on some listings to ensure they are not bogus, so there is a manual process somewhere in their data mining layer.Zillow has a better interface and the ability to see a map and visualize recent listings and close by sold listing is very nice.To me zillow.com has the better interface.Realtor.com has more updated information.One way I use zillow, is when I get an alert on a new listing from somewhere not zillow, I go to zillow, and most of the time, I can still see the pictures of the previous listing of that property, and that's very useful LOL.