For example, in homes historically heated by coal the occupants could avoid carbon monoxide poisoning by opening doors and windows for air exchange.

It will not be to their advantage to have high inflation or interest rates. 1031 exchange - We have completed over seventy 1031 exchanges so far.

They also appreciate tax-favored if held more than 365 days and your heirs inherit at a stepped up basis eventually and you can 1031 exchange along the way anyway.     

However, it sounds like  the coworker wants the landlord to pay for those changes in exchange for a higher rent. 

just pop on to FCI exchange and look around that website..out in the mid west and other low value areas there are notes available very cheap and seconds of course that are in default can be very cheap.. but then like others have said you need money to work them out.

Eventually after I accumulate enough of them, I plan on selling them and doing a 1031 exchange for something larger like an apartment complex.

And if you choose well, you should be getting much more professional management and experience in you personally could provide (although in exchange for a management fee).

The whole lease was about them doing restoration work in exchange for rent.

I'm interested to learn if there is any exceptions to the non-qualified use period or if the only option is a 1031.

Intangible rights to the asset may be another story...https://www.sec.gov/about/laws/sa33.pdf(1) The term ‘‘security’’ means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a ‘‘security’’, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.