Second: You will need C) Executory agreement (add clause that if you default on the payment, seller can take back ownership D) In addition, a purchase an sales agreement reflecting the subject to the existing mortgage note, under the seller's nameGet title insurance with the seller as a secondary in addition to the insurance already on the property.The purchase agreement reflecting both the equity payments and mortgage subject shall be executed and held deed to property, via this hybrid transaction be transferred into the buyer name..The deed, instead of being recorded at the registry, triggering a potential risk of a due on sale clause, shall be held in a mutual accessed safety deposit box along with the executory contract.

This post triggered me.

So with Prop 19, California made it very easy to trigger the reassessment.

Prop 19 will be implemented Feb 15 and upon your death will trigger a new evaluation of your properties for property taxes.

Your local inspector office can shed light on what conditions would trigger a full update.

Would this potentially trigger a tax reassessment on the property?

It may trigger a come due on my mortgage so I am looking for information on that.

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.