You could assume their loan but this depends on what they still owe.

Without this forward thinking I would be entirely dependent on social security .  

Hi nick, it depends on which part of Downtown.

Depending on where your deals are, I maybe interested.

There are some parts of the law that may be advantages depending on the property value.

Ultimately, where you invest is going to depend on your investment strategy.

This is very much worth verifying with a professional - perhaps a 1031 company like IPX1031 - and  also, depending what city the house is in, know what tenant eviction laws are like.

I would make sure the current owner serves the written notice that the tenant missed a payment and has 3 days(depending  on where you are) to make payment.

There's a new $1m cap that even if you meet all the qualifications and jump through the hoops, there could be some reassessment depending on how much the property has appreciated compared to its assessed value. 

Depending on if your grandmother has lived in the residence long enough and meets other requirements of IRC 121, as well as the amount of the gain, she may avoid capital gains if sold during life as well.