Strategy to minimize seller's exposure to depreciation tax

[Sean Grabow]

Hey Group! 

So I have a property where the seller is a 91-year-old Woman who owns a duplex in A neighborhood. It does not need any work and is rented out for well below market rent. She has property management taking care of it but is tired of dealing with them, paying the taxes, and everything else that goes with being an out of state landlord. The property is probably worth at least 400k, and she is willing to sell for a little bit less then that. The only reason she has not sold yet is that she has been depreciating the house for the last 20 years and prefers to not have the big tax bill that would be due upon selling it. Her children think that she should just sell it, but she wants to just have them inherit the property so that the depreciation tax would go away.

I'm want to present her and her children with multiple offers/solutions to this situation. She is very open to owner finance and other creative options.  I know that a lease option where I would execute the option after her passing seems to be the obvious answer. I've never done a lease option but believe I understand how it would work. I'm was wondering if there is any other idea's that could achieve our objectives? Thanks in advance for any thoughts!