Will he also avoid capital gains tax?

If so it sounds like a good house to just sell and make some tax-free capital gains. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $128,900

Cash invested: $50,000

Sale price: $310,000

Contributors:
Peter Vekselman

Partner Driv...

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $295,000

Cash invested: $10,000

Sale price: $400,000

Contributors:
Peter Vekselman

Partner Driv...

Seems like a lot of brain damage for very little gain.

---They can defer capital gains and still have cashflow with no headaches.Try negotiating 5%/$12k down so you still have funds for deferred maintenance.After 3-5 years, you can refinance to pay seller off.CHALLENGE: you better check everything out financially and with the properties (well inspections, etc.) to make sure seller is not dumping their problems on you.

Facts to consider: The condo is in my husbands name, has been for about 5 years so the capital gains taxes would be ours to pay upon sale.

I am military, and from what I’ve read there is an exclusion of capital gains taxes out to 15 yrs vs the normal 5 for military members.However, I only lived at the property for 18 months, not the 2 years required. 

Hey your messege is a bit confusing -  seeYou can avoid capital gains tax when you sell your primary residence by buying another house and using the 121 home sale exclusion.

Higher cost markets produce more equity gain for the value add.