John wants to de-risk his portfolio, eliminate debt and downsize.

Eliminate all extras in your life so you can get your first down payment and closing costs. 

The listing has cash or conventional loans only which eliminate at least 1/2 of your buyer pool.

Why not look at a fixed 1st mortgage followed by a small 2nd mortgage to eliminate the MI all together.

It also eliminates potential liability for the title company, who can reasonably rely upon the docs ... unless there are some other material facts not being shared here.

keep having him come back until it is fixed or until he offers to pay you to go awayonly go after his paperwork if he starts ducking youlet the guy fix his mistake. leaks can be hard to diagnose and often require process of elimination, which takes time and several storms and unfortunately often more damage

The tax benefits from doing this should help reduce or even eliminate capital gains and depreciation recapture upon sale, but again you need competent advisors to set everything up to get the optimal benefits from this strategy. 

I do not understand why you think the elimination of prop 13 would result in better cash flow or a shorter duration to cash flow.  

I purchased all of my properties on 30 year fixed mortgages (no pre-pay penalty).  I've read in many places in the BP forums and elsewhere that I should now aggressively attack the debt I carry with prepayments (debt ...

Congress wants to eliminate 1031 tax loophole.