Hello @David Luhman,  Lets identify the problem, Keep or sell inherited propertyPossible solutionsSell the property (capital gains will be limited).Leverage LTV for mult rental properties1031 to another areaDo nothing...Buy REOs for that cash, rehab, rent, cash refi, repeat.

If I was entering a market the size of Houston, I would do enough research to identify several areas of interest.

Properties bought with cash.My goal is to have confidence that the list I want (of properties with 100% equity) includes properties bought with cash.So I understand how they identify properties that meet the first criteria; but what about the second one?

I would like to have as many options available since I only have like 30 days to find the property or identify the 3 properties from which I will have to buy within the 180 days. 

Wow, that's what sucks about renters, especially an ahole like this guy, he identifies as a huge jerk before the contract is signed.

I have my RE attorney identified as well.

As a precautionary measure, I do something called Home safety evaluation, which is clinicians utilize their knowledge on home environment safety to identify safety hazards in one's residence in order to maintain the quality life in their own environment.

From there you may be able to identify the path of progress, up and coming areas or areas that are going through gentrification.

  - We'd likely use hard money to buy and then refi after guarantee is paid  - If we sell for $900k and the existing loan split between the two units is $390k each, we'd net ~$510k on the upper and take $500k as Section 121 Cap Gains ExclusionTo Finish:— Second, we'd sell the lower unit...to each other (if we can, that is the question)    - We'll set up two Single Member LLCs—one for each of us    - We'd each "offer" our half of the lower unit for sale for $600k ($1.2M list)    - Our new LLCs each offer to buy the other's 50% share of the lower    - We get a $240k bridge loan for a down payment on the lower (or we each make loans to our LLCs from proceeds of the upper sale)    - The LLCs get a $1.2M loan to purchase the lower as 50% partners   - **Before I read here last night that equity was also a factor in relinquished and replacement properties, I thought this (very literal) exchange of our interests in the lower unit would satisfy our obligation to 1031 exchange into a prop with the same or greater value, thereby saving us the trouble of identifying new, good, financially sound props to acquire w/in 45 days—while we are also trying to move a retiring senior and 2 cats to another state. - BUT then I read the value **and equity** have to be the same or better in the replacement property- SO, that means if the lower appraises for $1.2 with $390k in debt, our pre-sale equity is $810k    - We'd be obligated per the 1031 to buy something with at least $1.2M in value and at least      $810k in equity   - We sell for $1.2M, we pay $390k in existing debt, we have $810k      - We use 1031 to pay off $240k down payment loan (if we can?)   

If you remember the TV show "Name That Tune" the contestants were given a clue about the song (market knowledge) and then to get the prize (property) they had to bid (cap rate) on how few notes they would have to hear to identify the song.