Should I take advantage of the situation and do a 1031?

[Yeng Hawj]

I'm getting ready to sell a SFR, there's about $200k of equity in it. This property was bought as a rental and financed under my name but realistically owned by my sister and brother-in-law. They did the same for us previously so I was returning the favor. Unfortunately they're splitting up and now selling the house; it'll be on the market soon. Once the house sells, any gains will get split to them minus any capital gain taxes that I will have to pay for. With cap gain taxes being estimated around 30% ish, that's about $60k in taxes!!! Instead, I was thinking maybe I can use this opportunity for myself to do a 1031 exchange into a multifamily property investment, and figure out another way to pay off my sister and BIL (possibly gather cash from other family investors). To convince them of this method, I would have to make the deal sweet for them as well. Would it be a good idea if I took on the taxes myself? Any creative ideas any of you may have to take advantage of this situation? Thank you all in advance.