Child would like to buy the house, potentially for below market value, retain the original real estate tax basis and then parents would like to use the proceeds from sale to complete a 1031 in order to defer capital gains.I can see a few potential issues:Does the fact that parents converted it to a rental from primary residence cause a problemIs a purchase below FMV possible or are there 1031 ramificationsIf below FMV a bad idea, could some sort of non-interest bearing note be structured between the parties to make up gap between proceeds and FMVCan 1031 exchange property they identify be contributed into an LLC after closing for asset protectionAny advice on the structure outlined above, or other ways to transfer real estate from parent to child (while parents still living) would be greatly appreciated.

Their fairly recent Chicago HQ is a beautiful building and a big reason Fulton Market went from red-hot to white-hot...certainly wouldn't mind working there.If you do visit Racine/Kenosha area, obviously would love to hear your insights.

Hoping the BP communicate can provide the insight and guidance I have been yearning for.I live in the Shreveport / Bossier Louisiana area and I am very interested in getting into REI through rent - to - own (lease options) or sandwich lease options.

Willing to work or lend a helping hand in exchange for knowledge!

We had some email exchange about this issue and I made it clear it was not our fault.

You'll want to have this insight even before speaking with Realtors & Turnkey Companies. 

However, I know that there will be opportunities to Wholesale or Quick Flip (& 1031 exchange) as the deal might not work well as a BRRRR. 

As a commercial broker we hear a ton about concerns in finding a suitable property to exchange in to.

.), but appreciate your comments and insight.

@Douglas Andrew, The easiest way to treat this would be as two separate exchanges.