There are several things that come into play with determining if a property sale is capital gains or ordinary income. 

It's very expensive to move a home out, in most cases you'll be paying for it and then it will take several months to replace the home.My favorite model is the RV LOT Model, instead of replacing the lot with a mobile home set up a RV lot.

Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?

I own several STR properties in Tampa, some of which originally were built in the 1930's. 

There are several Brokers that offer this type of model in CaliforniaReferral Only company  - a referral only company is the only option if you don't want to pay realtor dues but want to keep your license active and make money referring business. www.LocalRealtors.comRebate Brokerage - for agents who's model is to refund a portion of their commissions back to their clients. 100% commission split model with low flat fee. www.Homebate.comFull Service Luxury Brokerage - Also offers agents 100% commission plans. www.TheLocalRealty.com

@Sean OvercrestThe transaction that you've proposed has several different tax implications: income tax, gift tax, estate tax, and yes, property tax. 

Several of them have ripped off investors.

Knowing the ARV clarifies whether investing further is worthwhile or if it’s best to exit now.If the ARV is high enough, you have several viable options:- Complete critical repairs (roof, foundation), incrementally update units, gradually raise rents, and potentially refinance later to improve cash flow.- Alternatively, complete the repairs and sell at top market value, maximizing your return despite the short-term headaches.However, if the ARV is too low and won’t justify the $50K+ in repairs plus remote-management stress, You might be better offer selling now, even at a loss.

@Karolina Powell what we've experienced in handling both is the struggle for tenant stability.Logically, the more people you add to any given situation, the more likely it is that at least two of them won't get along:(We've placed a new tenant in a duplex several times and had them not get along with the existing tenant. - Sometimes we lose both tenants, but often we can keep the longer-term tenant calm until we get rid of the newer tenant.This is more difficult to do when you place a new tenant into a 10-unit building where all the other tenants have been there awhile. 

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.