My first tenant to my first and only rental property is looking to move out and get out of his lease early for reasons having to do with the custody of his children and school districts.

The lender won't go for that.Now, we don't know who took it, doesn't matter, the owner has possession and has care, custody and control of the property until they and you close.

The required qualified intermediary is simply an added component in the middle and has to be used to perform 3 functions Document the transactions and process to provide a clear trail for your accountant and the IRS.Take custody of the proceeds from the sale and transfer to the purchase as you cannot have actual or constructive receipt.Consult with you to keep you straight of all the little regs and nuance.It's this third one that is so critical if you want to harness the full power of the 1031 exchange. 

i have minimal capital at the moment but can possibly get a private loan from a family member for a down payment. my expenses (my kid) dont allow me much flexibilty im a single father to a 4 yr old with 50/50 custody. ive also  minimized my expenses as low as i possibly can.

Be sure to account for these distributions when managing your finances.Custodial Fees: Managing a self-directed IRA may come with custodial fees.

Professional Liability – protects you from tenant claims of discrimination and wrongful eviction brought on by your property manager’s actionsErrors & Omissions – protects you from property manager making a wrong decision that costs you money (enables you to file a claim to recoup your costs)Workers Compensation – protects you against personal injury claims from the property manager’s employees and subcontractors when they work on your propertyGeneral Liability – protects you against property damage or bodily injuries caused by your property manager’s employees and subcontractorsFiduciary/Crime – protects you against the mishandling or theft of your money that’s in the care, custody and control of your property manager

When she passed, I took custody of the home and my sister is unable to afford/own the home, leaving me with the payment.

That said, the Solo 401k is flexible enough to allow for one or more LLCs to be added to your investment structure, if desired.Other benefits include: Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage, specifically an exemption from UDFI tax.

Apparently the husband now has custody of 2 kids of his from a previous marriage.

Now you don't have to buy two magazines when you want to read about Real Estate Guru Seminars and Brad Pitt & Angelina Jolie's custody battle.