Think of insurance as the "archer in the watchtower"...two different mechanisms that function together.

Anybody who's reading FAA literature is probably a pilot, airplane mechanic, or similar.

Just because you've seen a Ferrari in a parking spot of a car lot/mechanics lot/storage lot/ or in a big garage for years, and just because you've done a 100 hours of research on that Ferrari, and just because it's your dream Ferrari and just because you know the person that maintains that lot knows who's it is, and keep leaving notes on the windshield, doesn't mean you have a shot at getting it until it's for sale, unless its for sale.There are court appointed receivers.

Some are regional in scope and others are only valid inside a city.Every single program was custom developed locally, usually by civil servants and liberal agenda-driven citizens who clearly don't understand what a "free market mechanism" is, much less how to design one that's actually functional.

Did you ever have the mechanicals checked out?

You should discuss the mechanical steps of the Improvement 1031 Exchange with any prospective lender and your Qualified Intermediary to ensure the lender fully understands what is going to be involved.  4. 

You didn't mention the mechanical set up, so I am not sure hat utilities the tenants are paying, but this deal sounds way over valued by the owner.

The current state of the roof and mechanicals will determine if you replace them once or twice over the life of the home.

There may be UNRECORDED liens, like welfare department, nursing home or mechanics leins, you would be responsible for all of those also.8. 

you'd want to stud it out and insulate and drywall so there is room for mechanicals and the insulation is key.On the outside you could cover it with 3/4" plywood, tyvek and the Hardi or Vinyl .