1031 and lease option question on multi-unit

[Jonathan Jewell]

Hey fellow BP'ers .  I really could you some sound experience and advice on this one.   Still have this multi-unit in the pipeline.  I have a seller willing to hold a short term note (12 months)  was going to do a lease purchase since I am short on down payment funds.  Was hoping to do this as a purchase instead of a lease purchase but seller said If we transfer title with only 10% down. $33,290 (Sale price 332,900)   that he would have to pay capital gains tax on the full amount.   1)  Is this accurate?   2) Is there any way around this.?   I want to pull the trigger on this deal, but I'm really concerned that I wont be able to come up with additional down money at end of term.  If I did as a purchase, then it would be a simple cash/out refi.  I'm thinking I may just have to walk away on this one, and chalk my deposit up as lesson learned

Thoughts on what do do anyone?