The exchange company said that depending on the IRS auditor (in the scenario I was audited) they would see that the property was purchased in my name (solo), and then placed into a trust with both my wife and my name, therefore eliminating 50 percent of the exchange benefit.My Attorney setting up my trust (out of state) does not think this is an issue because California is a "common law" state, My Exchange company thinks there is a sizable chance of this happening, and my CPA is split between the two.

The chance meeting with the tenant means more to me than seeing inside.

What are our chances of making this happen?

Note: If you go to the same meeting each month, you can do detail tracking for a month, and can use same detail to estimate expense for rest of the year.( If nothing changed)2) Meals when traveling away from home - 50% is deductible unless the meal is provided to the general public (like Open houses) than it is 100% deductible.

Could you by chance elaborate on that more so when I start looking or when anyone else who is new to the concept and reading this will  have more of an idea of what it is?

My guess is no chance.

I am no pro at estimating gut rehab costs because I have only done superficial renovations.The current possible deal on the table is that I get a 5 day inspection contingency (during which earnest money is refundable) but if my financing falls through then it is not refundable.

So in other words, even though you and your partners income is solid, it may not be enough to cover the debt service and all the estimated expenses by a factor of 1.2. 

She is willing to sell it for what she owes.Numbers on the deal-95k 1st mortgage @3.875% ($890/mo) - her insurance is $2440/yr ($203/mo)- I was quoted at $650/yr ($54/mo)- her escrow shortage was $896, but if paid in full, her 1st mtg payment is $815/mo-10k 2nd mortgage @14.9% ($217/mo)-35-45k estimated repairs (I would do some work myself to get the cost down lower than 35k)-ARV is around 160-165k-Rent market ~ $1200/moMy thoughtsIf I paid off the 2nd mortgage (10k) and got a better insurance, the new mortgage would be around $613/mo.

Howdy @Tim LynchLook at the 50% Rule Cash Flow estimate of $99.16.