Land Contract and Subjet-To Deal, California

[Brandon G.]

Hi guys!

For those more familiar with Land Contracts/Installment Sales and Subject-To deals; I came across a potential deal in California and am trying to weigh the options to create a win-win.

The seller's goal is to avoid/reduce/delay taxes on the sale (fully depreciated SFR, California) of their rental property. They did a great job in cashing the equity out via a mortgage, but now realize that property management (whether paying professionals or not)is not fun in your golden years.

With that said, the property is currently encumbered by a mortgage under terms in which I may want to take on via Subject-To. This would accomplish my goal of obtaining another long-term rental property.
To help the seller with their goals, I was thinking of a Land Contract which would spread out the tax liability over time.

Q1. Is it possible (or a good idea for that matter) to do a Subject-to deal with a Land Contract?

Q2. Switching gears:
With respect to 1031 exchanges, does anyone happen to know if the IRS allows you to exchange a Single Family Residence for ownership in a REIT? This would allow the sellers another option to get rid of the headaches of owning traditional real estate and defer taxes.

Any insight or other ideas would be much appreciated.