I might suggest renting a car, if my memory serves me correct they are all 1-2hrs outside of Cancun. 

Calculate Capital Gains:• Selling Price: $290,000• Basis: $166,667• Capital Gain = Selling Price - Basis = $290,000 - $166,667 = $123,333Depreciation Recapture• Since no depreciation has ever been taken by any owner, there will be no depreciation recapture to consider in this case.Final Capital Gains Tax Calculation• The total capital gains that Person C will be liable for upon selling the property will be $123,333.Summary• Capital Gains for Person C: $123,333• Depreciation Recapture: $0 (since no depreciation was taken)My QuestionsIs the above estimated capital gains tax correct?

We are in a correction.  

Nicholas is correct.

Austin, you're thinking about this correctly.

@Ben Magee, In my state (PA) a tenant may break a lease WITH NO PENALTY if a unit is uninhabitable for an extended period and the landlord has been unable/unwilling to correct it.

Dan is correct, thanks for pointing this out Dan.

Am I correct on my thinking?

To intentionally reduce the leverage more than required is a foreign concept to me.Best wishesDan, financially you are, of course, correct.  

To make sure I understand, these are done by the sellers correct?