Then you want me to pocket the gain of $25k after words.

It worked great for us because we had a gain of over$250k on the California property.There are a couple of 1031 facilitators or here that can give you more details.

As to my WHY, well that is pretty simple... make enough money passively to allow me to support my family, continue doing the things we like and build a legacy for the future. 

There will be no Short term gain here.

Owning is a job as well, not a passive investment.

-seller has the ability to foreclose on you and keep the payments you've made to that point (and the property he would potentially be repossessing would be totally upgraded on your dime-seller receives steady passive income which may be very attractive to someone that ageAs far as other leverage, the most important thing to do would be to find out more about HIS needs. 

I am looking to convert that into full time rental property and also I want to void paying the Capital Gains Tax (500K for Married filing jointly), I have considerable equity in the home, I don't want to sell the property to others now and want to hold it for few more years.From the Article below by @Brandon Hall, I see that I can sell this SFH to an LLC I own.

I've been doing flips for the past three years and have gained a lot of experience from it, especially when we started expanding into different states. 

I am looking for the best option right now to maximize my passive monthly income (Less concerned about appreciation) and intrigued by a commercial real estate loan to do this for me.

I am flipping right now to build some capital and cash flow with the ultimate goal of purchasing large multi family residences to buy and hold for passive income in the near future.