Research the local rules and regulations.  

Anything less than $875k (less selling/closing costs) becomes “boot” and is taxable up to your total cap gains and depreciation recapture.To avoid tax, 2 rules.1) replacement property price must equal/exceed the sold property2) you must reinvest All the cash proceeds from the sale

The only thing I have to add to @George Skidis is that Wyoming does not have a tax, and the annual fee is usually only $50. 

Christopher - LLC is set up for 1065 50/50 wife and I.Ashish - Looking at my personal return now and AGI is over 150,000. 

It is about $300 a year covering maintenance issues and a $50-$75 each call fee.

We would like to do a tenants in common deed with her being listed as 80% owner and me being listed as a 20% owner to satisfy the 1031 exchange rules.

So as you can see this is not exactly mom and pop type of hey I want to buy a rental house guy wont sell... its was a fight and we were out 45k in cash so we kind of had no choice.. if it was a normal deal with EM that was modest and sitting in title.. well we just would have cancelled got that back and moved on .. no way we would have done all this. and I don't believe in OUR state the judges may rule with the homeowner before the big bad investor developer. 

@Geoffrey TanudjajaI’ve read about the 2 yr rule and it’d be interesting to know how much leeway the lender has.

We raise $100 to maybe $50 over market then they may stay but when we then raise it again by $100 6 months later they always leave. 

I can’t seem to understand the 50% rule if I decided to put only 5% down or if I do the 1% rule.