Benefits of Rate/Term refi:  No seasoning with any lenders to use the full new appraised value, no seasoning of the underlying first mortgage that is getting paid off, better rates vs a cash out refinance!

Even then, if you've built up enough carry-forward losses, a nice capital gain may not trigger any taxes to be paid. 

There's no benefit to the owner. 

I believe you were right he would inherit your cost basis, so he would owe capital gains.

Hi Sergio, I think there are way too many variables to be able to gain any real insight from responses here.

Ideally avoiding capital gains tax, we've owned it for more than 5 yrs & lived there the whole time.  

The 70% LTV and 3% origination cost you mentioned are typical, but they can definitely vary depending on the lender and the specific deal.Regarding the LLC or Trust, you're right, it's a good idea to explore those options for asset protection and potential tax benefits.

Selling an investment property can result in significant capital gains taxes.

This will have the added benefit of networking with other agents. 

These include the actual cash flow (NOI), Your net cash coming in after expenses and allowancesDepreciation - the tax benefit that lowers your taxes.