Since they own (probably filing jointly so it's just one tax payer ID anyway) the lake property in their names they would be the ones selling, performing the 1031, and then buying in the same name (or in legal parlance, as the same taxpayer).

That's call Non-Performance - - seek legal assistance immediately.

Stucco patching, painting exterior, new garage door, kitchen cabinets are a mess, couple rooms need to be painted. 

I too agree with everyone else, I never let any tenant perform repairs.

I´m 25 years old, originally from Mexico City, but living in Columbus Ohio since 2016 due to a job relocation.I have a bachelor's degree in systems engineering and a MBA.Currently working a full time job on a supply chain company in Columbus, Ohio.Actively looking to learn and start investing on Real Estate in order to get an early retirement (stop working for a company and spend my time and money on my own business).I have very basic real estate experience at the moment.I guess as many of you I started a couple of years ago with "Rich dad poor dad" and from there I have been trying to run out from the rat race.On November 2016 I attended one of this guru weekend workshops and taking out the fact that they try to sell you a "magic formula" to get rich with just little effort and paying them 50K, I think it was a good introduction to what real estate investing is, get to know some vocabulary and a better idea of how the business works.After attending to the workshop I decided to research a little bit more about RE and I found this awesome site called BiggerPockets, in which I have found a lot of interesting forums, webinars and podcasts.My real estate goals at the moment look like these...2017 - Learn as much as possible about real estate market on my area, raising money and exit strategies.2018 - Have a detalied real state business plan and do my first investment.2019 and beyond - Spend a big amount of time and money working to get a monthly income of 5K on real estate investments.I´m currently looking for a mentor to guide my real estate experience on the greater Columbus area.My main interest at the moment is the buy and hold strategy, so most likely I would like to connect with people already making some money of rental properties, but I´m always open to learn different strategies.In reward, my mentor will get my commitment of about 10 to 15 hours a week of hard work on helping get and analyze deals by performing some time consuming tasks that could be delegated to me so I can learn about the business while I help someone else grow your business.

I have the rent roll, the expenses, and how the property has performed for the last 2 years.  

Partial or Split 1031/121On this I am less familiar, but I am quite sure one can perform a partial 1031, giving the 1031 treatment to the investment portion of your equity, and I am pretty sure this goes for the 121 home sale exclusion as well, so that *I think* an option might theoretically be to do a 1031 with the investment side of the duplex and a 121 with the side you're living in.

I imagine you could get the seller for breach of contact or sue them for specific performance if they tried to sell to someone else....

Hi Kim,Check out the 2016 Best-Performing Cities by the Milken Institute.  

You have to really perform a risk benefit analysis.