If he doesn't need the cash now, you could also negotiate a split you're comfortable with to get him the return you and he feel he should have at the point you refi when the balloon payment comes due. 

Feel free to drop a comment or send me a message.

I'm feeling that I am being milked and preparing to get my attorney involved if we don't settle this soon.

They cited insurance reasons, which could very well be true, but many residents felt it as a big "f you" Now folks from outside the community could argue this was an entitled stance from the residents, to feel they had access to this private land when they didn't, and that on the face is certainly true.

However, when I go to meetups and I talk with people who are new at real estate, they often don't know where to start and they feel overwhelmed.

Feel free to ask anything, anytime.

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

You may not be able to break the contract this year but would recommend getting additional estimates going forward if you feel it is expensive.

I am sure others will feel the same.

It doesn't really feel like enough of a reason to expose ourselves to the risk of a costly potential litigation.