Client is Looking for a Way to Sell and Avoid Capital Gains - What am I Missing?

[Diya Wahi]

I have a prospect that approached me about selling their condo. They are an out of state investor. The property is located in Huntington Beach, CA. They did a remodel 3 years ago. There is a tenant in the condo until July 2025. A similar condo in the complex sold for $675,000 in August. The owner owes about $300,000. The owner's PITI is about $2,2000 and the tenant pays $2,600 for rent. They are open to selling but concerned about the capital gains.

I am racking my brain thinking about other ways to help them sell this investment but avoid capital gains. Would a seller finance strategy work even though they have a mortgage balance? Could I suggest SubTo? Or should I stick with a regular sell of the condo?  Any ideas you may have would be appreciated. 

[Henry Clark]

1031 or have them move there as a primary residence for 2 years.