Interested in finding out if anyone on BP has been given such great offers from subject company, subject to a $850 Processing fee. 

The subject of medicaid and real estate continues to elude me.

I should have included that I own a management company in the same city as the subject property so I will be able to do the following by running certain expense through another business:1.

@Casey MurrayAshish and Natalie both provided an excellent idea regarding investing in the QOZ.I just wanted to touch base with you on some of the numbers in your post.Your clients may be subject to more than $140K in tax.They may also be subject to the 3.8% of Net Investment Income Tax.Furthermore, since you are in CA, I assume your client is also in CA, and they may be subject to California state income taxes.The seller may be able to offset it by using closing costs at closing to offset some of the gain.The more the reason to consider the QOZ.

Subject too appraisals coming in at 85-110k/door. 

Listening to BP Podcast episode 289 should help.If you give hime equity then the two of you would be subject to SEC regulations.However, if he simply lends you the money, then the two of you can agree upon terms that you are both happy with.

I realize the answer to my question is very subjective and ultimately a personal decision, but I was just curious what others would do and their reasoning behind it?

The investor was supposed to by the property via "subject to" and resell it to him in a year when he was in a better position. 

That's a very important subject, because if the rentals are "merely an investment activity" and "not a trade or business", then the Pass-Thru Deduction does not apply to them.For those of you who are not familiar with this deduction – you really should be.

Sounds like this would be a perfect candidate for purchasing the property subject-to his mortgage.