Two months ago the police came with a battering ram, knocked down the door and hauled him off after finding $10,000 worth of drugs together with scales and other drug dealing paraphernalia.

When selling investment property (rentals) I've never had a problem with being a career flipper jeopardizing my capital gain treatment when it was applicable. 

My dad asked if his tenant was to be arrested after the cop indicated locating significant drug perophinelia inside the home.  

Ummm, off the top of my head....back taxes, liens on the property, asbestos, termite infestation, a former drug house or a murder at the location, crap neighborhood that no decent person will want to live in.

But if the home has been used for the manufacturing of drugs that could be a problem. 

They will also have to find somewhere else to be on the day of the treatment.

The key is that your father is the current owner/investor/taxpayer of the relinquished property and as long as the replacement property is also acquired and owned by your father it will qualify for 1031 Exchange treatment. 

I have a desire to support uplifting/encouraging art in Houston, for the art (music, performing arts, visual arts) is the heartbeat of the culture of a city, help propel the local church I am a part of to new levels of influence and ability to help (they have a large prison and drug addict ministry), and to provide future employment/contract work that can help establish good character and personal development in said employees.Real Estate/Business has the potential to impact on a city level what would be nearly impossible to do in the position of a W2 salary, even at higher levels in the corporate ladder IMO.This impact potential gets me absolutely jazzed.And so since November I have devoured books, burned through podcasts, employed my excel and access skillz, joined a local REI club, met up with local investors, read numerous BP threads/blogs, and now begun the actual deployment of action steps.The beginning of March has marked the real start of a new endeavor along side my engineering day job... heading down the Wholesaling route, seeing as deals are the must-have corner stone for this entire business. 

They are two completely different investments with different return patters, volatility, tax treatment, etc. - I do not agree with the suggestion.  

And no fault to the landlord, but the area this unit was in had homeless people, drug dealers and gang members in the immediate vicinity which in literal fear for our safety after someone was shot in the face down the road, we moved out.