The property is a single family home that is on sale for $179,000. 

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Here are the specifics on our Seattle house: 5br 4ba 3,400 sq ft, built in 2019, $1.7M est sale price, $5.5K-$6K/mo est rental value, 4.0% mortgage with $3.3K monthly payment, around $1M in equity. 

Selling costs would be 8-10% of the sales price but there should be an estimated proceeds sheet that would show you costs.

You owe two taxes:A. capital gain tax on $150k ($500k sale - $350k purchase)  PLUSB. depreciation recapture on $100k of depreciation taken.Now, let's assume that you messed up somewhere along the way, and you only took $70k worth of depreciation instead of $100k.

of course the sale of hurricane damaged houses also confuses the issue (my house had no such damage but is only about 4 blocks from houses that did).

However, once converted to personal use, you can no longer claim depreciation, and the accumulated depreciation will reduce your adjusted basis, increasing your potential taxable gain upon sale.

He will pay sales commission but get his BHA back and have lived for rent free. 

Is his capital only paid back when there is a "capital" event like a sale or refinance?

Please no sales pitches.