But it surprises me that a $700K structure placed permanently on a tract of land and used for productive purposes would not qualify for 1031 treatment. 

My lawyer says this - " The bottom line is that he missed a lien during a title search and now his buyer is stuck with the bill"

Typically you have a line that says you or someone you work with or someone you find will buy the property.  

There could be interest only years within those terms or it can be a hybrid product as you mentioned. 

This is in line with my thinking when investors self identify for a 506(b) offering. 

In the previous example I just cut the tree down and had roto rooter clean the line out one final time.

(This would be a nice product to maintain for everyone's use BTW...:) )

@Raul R.I am not an expert in short-term rental rules in NYC.My understanding is that it can only be deemed legal if the host does it in an apartment that is deemed commercial and below 4 stories.With that - I take it that anyone doing a STR in a building 4 stories or more is illegal.Furthermore - people who are doing a STR in a building 4 stories or less where the building is not deemed commercial - then it is illegal.A lot of people are playing outside those white lines.

Hi Dan - I had never heard of this mortgage product - thanks for the tip.

I think the coming generation will implement and figure out cost saving ways to keep buildings in good shape with an ever decreasing construction pool of workers.Many in construction are attempting to introduce construction jobs to more young people but they fail to realize the product is the issue and not the marketing.We have to implement technology.