Separate entrances, kitchens, living areas, etc.

LOL.I would say do a buyout, then do your 1031.Here is an excerpt from an article I found http://www.exeter1031.com/arti..."...1031 Exchange Structural SolutionsThe partners may either sell their individual interests in the partnership, or the partnership can sell the real property and distribute the cash to the underlying partners so that each individual partner can go their separate way.

@Jana GibbsOhio is a unique state that it requires a separate tax filing obligation in various cities/counties. 

Depending on the replies, I have thoughts of turning it into 3 livable units separated by floor.

A separate private entrance could be easily added with a deadbolted door to the main house.

But if I sold it all together, house with contents and contents not separately valued, I'm guessing none of it would be taxable (within reason of course/assuming absence of fraud).A similar scenario that might occur is when a house burns down.

That tells you a lot.I would be looking at all this stuff way BEFORE you hire an inspector......Typically inspectors only check the water pressure coming into the house, but not the pressure of the pipes.On a house that old, I would also hire a separate plumber to scope the sewer pipes, unless you know PVC has recently been installed....probably $150.You should also have termite/WDI inspection as part of your home inspection.

#1  Tenants/Contractors/Neighbors, etc will stir emotions in you that you didn't know you had. 

If this works we would probably do more properties in Oklahoma, and having a proof of concept would help separate our Friends/Coworkers/Family from their cash to invest with us.

But if I sold it all together, house with contents and contents not separately valued, I'm guessing none of it would be taxable (within reason of course/assuming absence of fraud).A similar scenario that might occur is when a house burns down.