For dental equipment I'd guess its like a lot of chattel. 

I am not sure exactly how you would do it procedurally, but you just need to record it as a deferred gain( future liability) and keep the original asset at the cost basis less depreciation and you can either rename to new property name but most important is to record the gain and depreciation recapture taxes that would have been paid, but for the 1031 exchange, as future liability on the balance sheet and no income statement items are affected, only balance sheet items are impacted.  

,Yes, 1031 is possible with a syndicated deal if the same LLC that sells a current investment buys another one as a part of the exchange procedure.

the procedures will be different and cost for the money will be more than a typical hml. 

Ironically, many of the current tenants are in direct violation of the CC&R including a dental office, insurance office and a Head Shop.

---So, ask about their standard operating procedures and make sure your management contract has an easy termination clause.What are your options if you experience one of the above?

I don't know the exact NY procedures, but your grandparents could probably buy the lien from whoever bought it, or just pay it off at the county.

@Yuriy Skripnichenko - I agree that multi-unit properties are the ones affected, but keep in mind that's what a lot of investors are seeking , plus whenever possible keeping policies, procedures and paperwork consistent across rentals can make managing easier.And the multi-unit owners also need to post a recycling plan for Philadelphia properties.

The appraiser has to go out to find comps similar to yours within 1/4, 1/2, 3/4, and 1 Mile and there are procedures they must use if they want to expand their search from 1/4 to 1/2 and so on plus explanations they must make in order to justify doing so.

He had an exact product number and procedure to how his house was going to be fixed up so that his management knew exactly what to do when something broke.