We can continue to operate at a loss indefinitely but that obviously isn't the goal.

By transferring the property or asset to the trust or completing an installment sale, the seller can defer taxes on the capital gains indefinitely and enjoy potential investment growth on the entire sale proceeds.

I'd recommend running the numbers as you renting out all units, if it meets your goals then that way it is probably a good investment since you won't be planning to stay in that unit indefinitely. 

That way you can get familiar with the intricacies of the tenants existing leases.If the Seller works with a professional property management company, you can often utilize their services to streamline the transition process post-closing for a while and/or keep them on indefinitely.

If I were to pass, my family would have enough assets to sustain their lifestyle indefinitely with reasonable management.

Trying to predict the future and know exactly what's going to happen will keep you on the sidelines indefinitely. 

#2 Might be appealing to seller as seller is waiting indefinitely with you.  

You can only postpone it indefinitely if you do pursue a 1031.

Or is it indefinitely (I think some in this forum would love that haha)Does (or at some point in time) this population decline make California a better place to look at investing than other States? 

@Greg Lee, You can always do a 1031 exchange which would defer indefinitely the taxes on that sale.