Creative options on 10 pack of homes to defer taxes

[Nate Richards]

Hi Guys, A retiree couple I know is interested in selling their portfolio, and asked if I know of a mutually beneficial proposal for selling their property. Here are the basics on the portfolio; (10) SFR properties, 100% owned debt free and 100% depreciated. Individual home values are $30-$40k, and have 100% occupancy via Section 8. Cash flow TBD, it works without a doubt but are C class properties. The sellers enjoy the cash flow but do not require it, and are worried about excessive capital gains taxes making sales unattractive due to depreciation recapture. I would like to purchase but currently have 4 mortgages and could not qualify for enough mortgages to purchase the portfolio outright. Is there a way for seller financing to assist both parties in this situation? It would allow continued cash flow for the sellers on the note and easy financing for me, but how could we defer or offset the capital gains to help the seller? All I can think of is delaying sales to 1 unit per year, with the buyer providing a down payment equal to their tax liability. Problem is the sellers probably won't last 10 years. Any thoughts or other options would be appreciated!