However, there may be certain exemptions or procedures available in your jurisdiction to avoid reassessment in specific situations, such as when transferring property between family members.The approach suggested by the tax assessor office, where Aunt A provides evidence that she was only a co-signer and has no ownership interest in the property, could help support your case for avoiding reassessment.

Many times a tax break is available for a primary residence often called a homestead exemption).

However, there are always exceptions, and if the syndicate has registered, or found an exemption that allows public advertisement for investors, then maybe it's ok.

  - 2 of 5 year rule on owner occupied allows gains (to a limit) being exempt from gains tax- accelerated depreciation (cost segregation) can further allow writing off the depreciation- this to me is the most crazy of all, at death property value is rebaseline with all gains being forgiven to the heirs.  

The new legislation for higher taxation of capital gains, to 66.67%, with no exemption for corporations (individuals get 250k per year) is another excuse I am using for now.

If you can qualify for the Solo401K the UDFI from using leverage is exempt. 

Just has an extra step for the MM fund.If there are Treasuries involved, is the interest exempt from state and federal taxes?

If the primary unit is over 15 years old, in most areas in CA the primary unit is now rent controlled (which I believe is not what was intended by the 15 year exemption but is the way most jurisdictions are applying the 15 year exemption).  

By turning it into a rental, you may be on the hook for capital gains tax in the future vs using the 250k exemption for single filer or 500k for a married couple that files together on capital gains if you were to sell now. 

The tax exemption for Section 121 will not apply to the investment/rental portion.