It feels like we're stuck and just have to ride out another decade or so to realize gains from the property.So here's the plan: Sell our CA propertyDo a 1031 exchange and buy 2 SFRs in North Carolina as rentals for all cash. 

https://www.irs.gov/publications/p537Also, you could have your parents look into doing a 1031 exchange, if they are open to reinvesting their money in another real estate venture (this basically just defers the tax on the gains to a future date, when/if the new property is sold... unless they do a 1031 again, which could allow them to defer the taxes basically forever if done over and over).

I had to do a 1031 exchange and this was really the best option out there with the knowledge I had at that time How did you find this deal and how did you negotiate it?

Hi Account Closed,I'm also in OC and have been reseraching out of state investing (exchanging my CA properties).

You can purchase less than you sell and you can take cash out - this is what is called a partial exchange. 

Any and all advice appreciated, and if you’re in the area I would love to chat about exchanging my time for your experience so we can both profit.

He had this home for 5 years he was paying off the mortgage, now after two tenants that I have put though here, I owe around $177,000 the house is valued at $255,000-$260,000 I should make a good profit off this, but I am going to do a 1031 exchange to trade this up.

It would be best to sit down with a tax accountant to see if the 1031 exchange can be used or if section 85 can be a benefit here.

We have one long term tenant who vets prospective renters and handles local issues for us in exchange for a break on rent.    

After that they could renew in increments of 5 years in exchange for rent increases of $.50 a sq ft.