- There A LOT of other deal types that require little cash and are easier to do than lonnie deals.Alternatives:- buy the park- buy MHs on their own land (we own 20 or so, all are on rent to own, seller will finance to up the quality of the tenant and reduce turn over).- Stay away from MHs all together:  direct mail expired listings of nicer homes in good school districts with the deal type being lease / option or buying subject to.  

My brother, who will act as my property manager, handyman, and generally handle all of the in person activities associated with the properties will be staying in the second unit of property two with a reduced rent in place of all he is bringing to the table for me.

If you want to get the most out of your depreciation deductions you should have a cost segregation study done on the property which will identify assets for accelerated depreciation which significantly reduces your tax liability.

Maybe select the family with the highest income to reduce non-payment chances.

Or buy a duplex in your current location with the owner's unit large enough for your family, and rent the other side, thereby reducing your cost of the larger house.  

Is there anything I can do to reduce taxes paid on the capital gains from appreciation?

If you "use" those funds, even if you have to pay for them,                       with multiple uses, you only have to pay once for them...which means the cost/use is                       reduced with each use.C - Understand that money isn't a noun, it's a verb, and when it becomes a noun for                   you...you lose, but the most important of all is....D - Learn the meaning behind this sequence of numbers................................                                                1073741824

Would this reduce the seller's tax liability?

Your out of pocket expense can be reduced significantly if you choose that path.Would welcome the opportunity to provide assistance for your family.

And it would be even better if you could sell the 4 to the same buyer, to reduce cost and uncertainty.But, in effect, your Replacement Property for each of the 4 Relinquished Properties would be a  1/4 interest in the new property.Hope this helps.Michael Lantrip