The appraisal checked out so I think we are ok to proceed but it was a new/interesting scenario for me.Thanks for your input, glad to hear past stories of similar scenarios.  

Your recommendation to Bernard to take early distribution and invest proceeds into IUL is really bad, you should abstain from giving such advice to anyone else.

I have $95,000 less in my bank account.Now I will sell this note for less than $95,000 (Excepting for the few payments.)I put the note sale proceeds in my bank - BUT Now I have less than when I started.How is this good for me?

If I sell it, the proceeds will be around $170K after deducting all associated costs. 

You have to determine what piques YOUR interest and proceed in that direction.

The proceeds from the investments would go to my trust.  

Over time, real estate can be is a solid investment.Key Takeaways:One benefit to investing in real estate is that is can give you a steady flow of income.One disadvantage of real estate is that it is time consuming and sometimes difficult to be a landlord.Another disadvantage to investing in real estate is that it requires an up-front cash investment."

I feel like this area will pop as far as desirable place to live, close to downtown and a  nice area...one of the last affordable safe neighborhoods.This is my most time consuming property as far as getting tenants=students are a frustrating group.?

That's why it is important when you do a Section 1031 Exchange to break down the exact makeup of your Net Sales Proceeds that you are reinvesting in the Replacement Property.  

The dial the Federal Reserve Bank turns is for overnight interbank debt, mortgages are long-term consumer debt.