What's the catch, or what are possible catches in this situation?

Some great info and knowledgeable resources on this thread so hoping to reignite it and get some feedback on my situation :)1031 exchange Co own multifamily with sisterI co own a multifamily with my sister.

We haven’t ran into this situation with the SFH we have owned in the city for 4 years now...

This should be handled by an attorney or title company that understands the situation.

I have a situation I am hoping someone might be able to offer an opinion on.We bought a house at trustee sale a few weeks ago. 

I tried to keep the sense of urgency while stating that this is something more personal than just a wholesale type situation (which may or may not add value I guess we'll see). 

This has been OK'ed by the IRS (in 2012).In your situation, in which you want to use the sales proceeds to buy another primary residence, there's a little more to this in order to structure it correctly.

How do others handle this situation? 

Good morning,I have a complex situation that is very strange.I closed on a property in Alabama (I am the buyer) in February and the money is still in Escrow at the attorney.The reason for this is "apparently" after the tornado the property was damaged.

I don't know your situation, but I always recommend people house hack their fist investment.