You lose money and they end up with an eviction on their record.

Yes, you can do SDIRA buy a distressed property and rehab the property.BUT be aware of "Prohibited transactions" and  "disqualified person".

That alone could be worth between $250-$500K.I personally like holding properties, but you may not want the hassle. 

It depends on how much money it is and what their income is. 

Might be better to sell and use that money to buy a rental.

I've never personally worked on a transaction like this, but know folks who have.

Good luck in your journey and feel free to reach out as I'm happy to share my personal experience. 

Cleaner on my first property was constantly texting me with requests, schedule changes, personal issues/TMI, super long messages etc so moving over to Turno has been a nice respite. 

Pay less point because of a good good relationship with hard money lender

In your case, the LLC that owns the single-family home would need to be the one making the new purchase to qualify for a 1031 exchange.However, using a 1031 exchange to buy out shares of another LLC is generally not allowed, as the IRS views LLC membership interests as personal property, not real property.