I have a potential partner that has sold an investment property and moved the proceeds into a QI for a 1031 exchange. 

I need to formally evict them with the attorney but plan to sue for all of the damage they caused in small claims court on my own.

I don't think the courts would agree with this if the person with any equity complains.Yes you can transfer to another beneficiary without anything being recorded as only the trustee is public record.item 5 would require a foreclosure. 

When I invest the proceeds of the loan in a syndication, I end up with two returns from the same dollar. 

Would need specific costs for rehab, debt on property now (including utility bills), Present Value, Future Value (assuming rehab completed), cost to take control from "Aunt's Mother in Law" (count on this happening), carrying costs while the property is going through rehab (this will be very large and long due to extensive rehab needed), and other costs not mentioned that will add up.Also you have to think about how any proceeds would be split, to who, how much to who, etc...and, who will be responsible for what from now until the property is sold. 

Actually a great move because it will allow you recoup your original capital, or purchase another property or take a well deserved vacation without having to pay tax on the money.If you want to defer all tax you must use all of your proceeds and purchase at least as much as your net sale. 

I told the tenant the rent being late each month isn’t appreciated and the tenant proceeded to defend the reasons why the rent has been late.

Hi Damon, depending on the amount of equity in the property, severity of the repairs needed, and if you will still cash flow after doing so, refinancing and using the proceeds to repair the property and re-rent it may be an option.

Most likely you are going to have to get together with the other partners and go to court to force the sale of the property. 

If it appraises then it seems like they are more likely to proceed.