I've combined info from experience, research, discussions with other investors, and several CA attorneys since they all have varying answers, perspectives, etc...  

Even allocating a portion of the monthly rents towards the down payment is an exposure.Each State can have unique issues with this approach, so you should ALWAYS get legal counsel on this subject and  how to draw up the agreement. 

(Get a degree if you don't have one) (Get a masters if you have a bachelors) ("Work work work work work" -Rihanna)3) Use that money to buy strong CASH FLOWING houses (buy and hold)4) Keep saving, combine the savings with your investment income5) Use that money to buy more6) Keep growing the business7) Retire!

Another option is combine multiple properties so the loan amount is larger and worth the banks time.

Typing out all the possibilities & explaining the combination lease back & 1031 would be arduous .In a nutshell, for an effective solution you need to calculate her gain & then brainstorm solutions to solve the sellers situation.

I have ten rental units with a combination of SFH and duplexes. 

This again depends on the city.To bring the unit into compliance down here you would most likely have to combine two of the units as the planning/zoning, bldg department, and maybe fire department (all where applicable, will depend on the city) dictate.

But with your (combined) income, factoring in deprectiation, in all good reality you won't owe anything in addition to what was already withheld by your employers.Obviously, the above is by no means tax advice nor intended to be tax advice.

Firstly, I want to apologize if I am not posting a unique discussion and this overlaps with a thread that I have not yet seen.

Investors who really want to sell, but are not quite sure what they want to reinvest in and/or do not want to go out of state, can look at a variety of other investment options, including:Delaware Statutory Trusts (DSTs)Tenant-In-Common Investment Properties (TIC)upREITs (combination of a 1031 Exchange and a 721 contribution into a REIT)Net Lease Property (NNN)These other options have pros and cons just like any other investment solution, so you should always meet with your legal and tax advisors to review your options before proceeding.