- 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.

check out Dave's fileshare for some spreadsheets to help you with some estimates.truly identify what needs to be done or just schedule a contractor to walk through a prospective house with you and ask him a lot of questions.

It seems to come down to arbitrage ("pocket the difference") versus commission as the only tangible difference that I can identify (you know, aside from the pesky legal stuff like "is this legal at all?")

If you make up an Elevation Study, you can pay them to send it through a Quick Approval Path where all the different departments can take a look for any glitches and identify any questions that would need to be answered before they would sign off on you proposed plan.

When you work with her, you will feel her passion for real estate and discover that she treats every transaction like her own.Jing is here to learn more investment strategies so that she can better serve her clients, and she is interested in identifying rental properties for her clients and herself.  

I've seen too many people trying to hire me to do the automation for them when they didn't have their standard procedures in place and more importantly, haven't identified their buying criteria (besides "I'm looking for wholesale deals" or "I need rehab properties"); business goals, marketing budget and so on.  

Since that transaction, I made the decision that I would focus exclusively on wholesaling, learning how to market to find off-market deals, learning how to identify a true "deal", and I also made the decision to get my real estate license.

They take the guesswork out of real estate investing, and known for their ability to identify undervalued real estate and provide their investor clients with an investing System (bankers, lawyers, rehab team' and real estate brokers) to find, buy, remodel and then sell or rent investment properties.

HI Mike,Some banks allow a letter to be written identifying it a gift.