The property is in terrible condition where it easily could cost about $150k+ for the renovation and selling “As Is” I’ve checked the comps and it seems that market price for that area is about $250-$375k along with the next door neighbors home being relatively new and renovated from it’s older structure.

He is basically squatting at a relative's house.

Does anyone have any knowledge of zoning /city laws that would prevent me from doing this or would permitting process be relatively easy with a good contractor?

I would use a relator that I had a connection with or was recommended from an investor association. 

Hello Gurus - I have a question on 1031 exchanges related to the Due Diligence deposit for a relinquished property.

My market is relatively cheap but these properties must be distressed?

. $460,833 value, or 11% overvaluation (41st highest).Appreciation: 22% list vs. 16.2% value, or 36% overheated (No. 10 largest gap).Sales speed: 28 days on market, down 50% in a year (No. 7 drop).Inventory: Down 64% in year (No. 11 decline).Remember, the Bubble Watch Index reflects “relative exuberance” in these 47 markets.

I spoke with my broker and the real estate attorneys we usually work with, they said, as long as the plaintiff/ tenant's attorney is able to file a motion or whatever and relate the intentional of the out-of-state company with tax evasion matter, then they can have the liability court in the city where the property is located after the first motion is resolved.

@Ryan BakerI read a ton of financial related and real estate focused books my last semester of nursing school.

As far as I can find1. passive losses can't be used to offset depreciation recapture2. you can fully deduct suspended passive loss from the profit when you sell your rental property - you must sell the entire property and must be taxable event - recognize income or loss, sold to non-related party3. you can't use it to offset the capital gainI guess the question is if your MF syndication is sold, is the profit "capital gain"?