But it is a conversion from one rental to primaryOther alternatives to achieve the basis transfer would be to sell both and buy a new one but that would trigger income taxes and sales expenses that may be more than the tax savings from basis carryover. 

I like the idea of having the deed transferred to us to avoid triggering a sale and county reassessment.

Are you looking to build cashflow, to have a place to move to later, etc.With that said, here are some considerations:1) Transferring title (you buying the house) will trigger a reassessment (higher property taxes), which will significantly affect any potential cashflow.

With Prop 19, this will trigger a re-evaluation of the property unless my husband makes the property his primary residence.

If the property has already transferred to three siblings, the act of a buy out will trigger reassessment on 2/3 of the property.If the property is still in trust and has not yet been distributed, there may be more options.

If you close in your name and transfer the deed after it is a SALE this can trigger the lender to call the loan, you can't get insurance to match the note and they check.

I would suggest that you look into whether holding title as joint tenants will trigger the change in ownership needed to effect pre-Prop 19 benefits.

My understanding is, that a parent to child tfr or grandparent to grandchildren tfr (only if all parents of those grandchildren are deceased), or inheritance from parent, may not trigger a reassessment as long as the child/grandchild is using the property as their primary residence. 

You’re talking fix and flip investments.What triggered your concern?  

But, when one is serious and can pull the trigger it makes the journey getting there TOTALLY WORTH IT!