What's the purpose of the additional 20K?

Hi Wayne, The issue is that properties must be held for rental or investment purposes in order to qualify for 1031 Exchange treatment. 

I am not in the professional league here and neither I have any experience with real estate investment personally but I have just helped real estate agents and brokers and lenders in helping promoting their business and selling their listings online.

For studying purposes I cannot be of much help. 

There are better deals out there for cash flow purposes. 

They've been talking about it for about 3 years now, but I recently saw them promoting it on Zillow, which is a first.

Don't just use one bank, always have a backup because their policies can change, there probably is no commitment to refinance a balloon loan.While the purpose of the loan and project must be viable, be conservative with estimated revenues, vacancy issues, maintenance, by conservative I mean don't overstate the upside to you, it's almost like showing the worst case.

First floor, who is the root of the problem, has not paid us the money she was supposed to have paid us by March 1st for the oil that was in the tank when she moved in, but I don't think that can be counted as non-payment of rent for the purposes of eviction.  

The family member needs to invest in something for tax purposes, so I want to make sure it is done properly.

I don't mind fixing the real issue, but what happen if he breaks things on purpose.