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!

On most small MF that get listed for sale, the owner lost interest years ago and management attention is in a steady decline until something triggers the sale.

Start with BiggerPockets Ultimate Beginners Guide (free).

Selling your home to free up capital and focusing on long-term rentals in more affordable markets is a smart approach, especially with a property management company in place.

If you are interested but not sure where to begin, happy to send you a free ebook.

Check out FilePlace, where user-created forms are available for free.

Find parks in the area that have open spaces for mobiles then negotiate with the park owner for 6 to 12 months free space rent or for them to pay the moving costs. 

Send me a DM, I'll send you some free resources.

Feel free to DM and we'll connet.Thanks!

Feel free to shoot me a DM to discuss any questions you might have about investing out of state, always happy to chat!