I wrote the above for informational purposes.

@Jared Pruett Good responses from other agents above.

Thank you very for rapid response.

That would defer the tax on the other 50%.The only fly in the ointment I can see is that when your parents were buying that property initially to finish up the first 1031 they had to have the intent to hold it for investment purposes. 

Thanks for your time in reading this and any response you have is appreciated!

The main entrance has an office, multi purpose room, bathroom and coin-op laundry room.

I have always had 80-90% of my total net worth invested in real estate and the rest liquid as a cash reserve besides maxing out my IRA, SEP IRA or Solo 401k for tax purposes.

Hello Katie, thanks for the response.

I know that the response to that is that the note is secured by real estate but... 

We have been very responsive to them also.