Or maybe rates stay high and he starts feeling the squeeze with his investors if/when he has to refi at 6% or sell at a price I would have paid today.Back to Bjorn's point, keep reviewing and underwriting deals.  

Here's a quick snapshot from the COVID outbreak of early 2020 to February 2024:Key TrendsCondo prices: 📈 65% since March 2020Single-family homes: 📈 75% since March 2020Rapid appreciation mostly in 2020, stable/slight gains sinceMarket resilience despite rising rates and insurance costsAI stock market-fueled wealth could drive more home purchasesMy Prediction:Prime single-family homes: Prices remain stable or increaseCondos: Flat unless truly distinctiveThe Big Question: Are YOU ready to buy or sell?

I don't know anything about your situation, but possibly think about selling the home and leaving it up to the next buyer/investor to deal with.

I have a mix of flips, buy and hold, buy and sell on contract for deed, one vacation rental, and one current apartment syndication.  

To get it at short sale, the seller going through the foreclosure would have to be convinced it is the more favorable option pretty soon and choose to sell at a lose than risk the consequences of foreclosure.

In late 2023, I got an email from the owner that he was ready to sell.

One of these unit owners, who is now refusing to pay, is also attempting to sell their unit, so obviously they don't have a vested interest in the building anymore.

The properties you are selling and buying in a 1031 must be properties you intent to hold for investment use. 

What if you have to sell quickly and then the town takes your second bathroom and your price drops 25k?

Ultimately, should the business not succeed or perform as well as you intended, owning a property in a strong location will be attractive to other users that you could choose to sell or lease to yourself.