We are running into a roadblock of him getting approved for a loan.

We are trying to sell because the place is too small for us, and we need every dime of equity we can get out of it to get into a new home.

Things wear out over time, require updating, upgrading, replacement etc..

We are getting off topic.

I would agree if we were talking about financial statements, but as I understand it, we are talking about tax basis reports.For tax purposes, one can use a modified cash basis when filing.

My agent is saying that we are unable to split the contract that way (or reduce the purchase price), so I'm trying to figure out options.

Beyond that, real estate is largely local; in my market we are not seeing anywhere near those numbers.

We are full-time investors ourselves (I'm Director of Acquisitions for a private equity firm); and our income comes from our investments.

Also the home is a subject to, where we are paying the remaining 3% mortgage, so a full refi would not be a great answer either. 

We are currently living just south of Boston and are looking to purchase a 2-4 unit property in which we would live in one of the units.