What would you do? Probate and Capital Gains and Multiple Partie

[Gregory DeRosso]

So here's the story. I'm asking for good friend who for some reason doesn't and wouldn't join biggerpockets after we were talking about how great REI is. He was asking me what I would do.

His father bought a multifamily under a private mortgage 42 years ago for about 35k. From what he knows it never had a refi nor money has been taken out. I assume his Capex averages to about 6% per year and the valuation today about 1.2- 1.3 million. Unfortunately his father passed away leaving the property divided in 4 ways.

Him 64%

Person B C and D 12% each.  

Right now the will is still being processed though the surrogate court but when it's all done He's not sure how to handle this.  

Option A try to buy out B C D after they pay their % of the capital gains tax if they're willing.  The question is what tax implications would He have if he pulled from his growing money market. I don't know what his initial investment is but he thinks it should be more than enough to cover it.  

Or

Option B 

Sell the property pay his % of the capital gains and reinvest.  He wants to know can he take advantage of a 1031?

Obviously, I don't know how to answer but maybe someone here does.  

Oh fyi, this is in the "tax haven" we call New York....