The situation is being rectified.  

When you add that: "The downpayment and closing costs would be one large hurdle"; I can't tell if you can only afford to do this once (thus tying up whatever you have saved) or multiple times.  

@Chris Ke With $200K for a down payment and the ability to invest full-time, consider starting with a 4-plex or multiple single-family homes (SFHs) within a 5-hour drive of Los Angeles in areas like San Bernardino or Riverside.

You didn’t mention the property or deal specifics, but for many deals in the recent years, there have been amazing and unusual gains due to multiple unnatural circumstances.

So the question becomes based on their individual and personal tax situation what is the estimated tax burden they'd save? 

Hello all! Was wondering if I could turn one of my spaces into an assisted living multi-tenant facility as it’s in a great area for it and can be changed with a reasonable rehab. I’m not sure all of the regulations/ru...

The specifics of your situation will determine where you might need to fall on that spectrum of holding period.

We're often helping each other problem solve our listings or helping with specific situations that are occurring at our properties.

But In your situation you could purchase the SFH for most of your cash. 

There are many tax accountants on Bigger Pockets that can help you with your situation.