@Nadeem Alamgir - not yet ready to make any moves, still learning our process with this one. 

I usually do this to help cover the carpet cleaning costs once the tenant moves out.

This strategic move paid off handsomely as we were able to command higher rents than initially projected.Here are the key financial details of the deal:Purchase Price: $270,000 (jointly with a partner)Financing: Obtained a commercial bank loan with a 30% down payment, 7% interest rate, and a 20-year amortization period.Initial Rents: $1050 and $1250Current Rents: $1400 and pre-leasing for $1500 (making it a 1% rule deal!)

Now, you still have to comply with all of the standard 1031 rules -- including (A) buying properties that are at least as valuable as what you sell, and (B) moving all of your equity from the STRs into the LTRs -- then you may still pay some taxes even with a 1031. 

Quote from @Andrew Steffens: I would feed comfortable moving forward.

Network, Connect, Learn, and Make Moves! 

I told her she could buy it, hire a licensed electrician to install at her cost, and have licensed electrician replace with original light upon moving out, also at her cost.I will note that in general, while you are always able to be nicer to your tenants, and there are times I think this is worthwhile, if you are not required to under NYC laws, I would not set precedent that you do these things for the tenant at any out of pocket cost or work for you.  

Which they move out when they sell to you. 

I won't shy away from rough neighborhoods, but bigger margins are needed to move them fast. 

Also, we’re certainly outgrowing our duplex unit as we’re a growing family so finding something larger to move into wouldnt be too bad.