Sell % of property + 1031? (first question)

[Account Closed]

Hi. Just joined. Here's my situation (using rough numbers)

Bought house in 2007 as part of a 1031

Lived in house for 3 years

Rented house in 2010

Want to sell, tenants want to buy

House worth 1.5M, I owe 200k, tenants can afford 1.2M

I want to sell and somehow not exit the 1031. I've read up on MIS, CRT, NNN, owner finance.... I'm not sure yet what way I'll go

But my question is, is there any way for me to somehow "sell" the property to my tenants who can only afford 1.2M? If I could apply (1M = 1.2M - 200k) to my next venture and not lose the 1031, that could work for me. But what happens to the other 300k? I could also be interested in somehow selling them 80% (1.2M/1.5M) and somehow hanging on to 20% (300k/1.5M) as a long term investment.

Bottom line is I am trying to find a solution whereby

1. tenants pay 1.2M get to stay there long term

2. I get a min of 1M to invest elsewhere and not pay capital gains

3. somehow the 300k remainder also doesn't trigger capital gain

I hope that makes sense! I'd welcome any creative ideas....

Thanks.

[Bob B.]

@Account Closed will be along shortly to make sure you do it correctly.