If you are paying no rent in your parents beach house that could bring in a lot more to your family being rented as a beach house during the season. 

My parents bought many SFRs in 70s and 80s and with mortgage rates at 18-19% but always made money as rents greatly exceeded mortgage payments, because home prices matched incomes for 200 years prior to 1994, then FED started money printing x 30 years until now.

No one is going to do the job that you the parent will do. 

I agree with you with holding the property.

For example, certain states like CA and MA have "claw-back" provisions, some states have withholding requirements, PA has some funky 1031 exchange laws, etc.Work with a rockstar QI (like @Dave Foster) and a real-estate-savvy tax professional to ensure you don't fall into any traps.

I also would like to get a house for my wife's parents.

People like Central Tucson because it is close to the downtown that has a great food and night activity scene and is also close the University of Arizona campus that draws lots of parents and grandparents and people who just like the college campus vibeWest Tucson is a great option for the views, golfing and resort feel.

I've definitely seen parents purchase properties close to campus to house their kids while they're at school, it's a solid move.

I've had a hard time coming to that realization, it's a home with sentimental value that we figured we'd keep forever to give to our kids, but that's the parent in me.

One parent can stay home through college.