Minimizing capital gains taxes for seller

[Gabriel Uhl]

Hi all!

I'm in the Kansas City area and have had the dream of getting into home renovation and rentals for several years now and am at a season where I can finally pursue that intentionally. I'm partnering with a friend and we plan to acquire our first property Q1 2024. We're building our team right now and networking. I just heard of someone I'm connected to who owns several multi-family rentals and wants to get out of rentals but doesn't want to get hit by the capital gains taxes from selling them. I'm researching to see what the options are. I've thought of seller financing with installment payments. Also looked into Delaware Statutory Trusts (DST's) but I don't know if she meets the income requirements. If I could find a similar property for her to do a 1031 exchange that may be an option but that defeats the purpose of her getting out of rentals. Maybe she could sell several residential rentals and find a storage facility? Does anyone have any suggestions of how she could sell her rentals and not be penalized on taxes? I think if I can provide a solution for her she may be open to giving me a deal on purchasing one or more of her properties.

Thanks!
Gabe Uhl