@Joe S.We held a few calls on this topic.

They are held hostage by the buyer until the buyer fully pays off the mortgage.

We managed over half of the purchase price in cash and then the remainder was held as a 3 year seller's note.

@Kayla Elliott  Hi Kayla - this was a commercial mortgage loan with a local bank, that held it "in house" after it was issued. 

You would need to rent out the property for at least two years to demonstrate it was held for investment purposes and comply with IRS guidelines.

Held for a year to get Capital Gains. 

Tom, Based on what you've provided, if the property was held over one year, you'd be subject to the long term capital gains rates and any depreciation that you took on the property in the past would have to be "recaptured" (Added to your income) at the short term tax rates (but it will not exceed 25%). 

A couple of follow up questions. 1) After the 1031 exchange, and then after the follow on 721 contribution, I own an interest in a partnership held by the UPREIT.

We also tried getting a personal heloc, but can't do that on a property held in an LLC.  

We held it for longer than a year while we were renovating.