Without REPS, accelerated depreciation on long-term rentals only defers PALs without offsetting W2 or portfolio income.

@Lance Turner Approach the seller by emphasizing the benefits of seller financing: it could help sell the property faster, provide a steady income stream, offer tax benefits by deferring capital gains, and give them security since they’ll hold the title until fully repaid.

there are so many forum posts on BP from folks who bought a random property in a 'low cost' market and got crushed by deferred maintenance or challenging tenants.i looked at a few of your other posts. 

Allowing you to defer all of the tax, as well as not have to recapture any depreciation.

And as long as the purchase of the replacement property meets the timing requirements of all of the sales (identified on the 45 day list and purchased within 180 days of the first sale) then you will defer all tax from both sales.

Then they move into your spare bedroom).Now keep in mind when doing a 1031 exchange, in order to defer all of the tax you must purchase at least as much as you sold or greater.

And the rest can be deferred indefinitely in a 1031 exchange. 

and the rest of the gain is tax deferred in the 1031.  

A 1031 exchange would allow you to sell the property and use all of that equity and deferred tax from the profit to purchase something that would produce better cash flow from the beginning.

I like to keep things simpleEIther sell him 1/2 the share directly(Look to see if you can defer your gain/tax.Or look to become partners in a new property.