I would need to see pics and detailed bid for rehab to get a better idea, but 60k does not go far on a 10 unit. 

He could also need access to your wifi for smart home features like keypad door locks, thermostats, lighting, etc.  

@Philip WilliamsJust came across your post today; it was featured on one of the BP E-mail Newsletters. 

See section 453(l)(2) (B) for details.

I have not worked out all the details yet but wondered if anyone has looked into this option ever?

@Surendra Chawla Just updated some of my assumptions in prior post to give more detail.

They have been featured on BP so you could search for the episodes.

My point was to thank Michael for clearly detailing out the rules.  

Here's a post I wrote prior that explains some of the basis and property tax issues in more detail.  

So if each of your smaller buildings were $400K then in order to use both and fully defer all tax you'll need to purchase a building for at least $800K to absorb both of the sales.The 1031 process is a little detailed but that is what your QI is there for.