As for buying rentals, make sure your real esate agent understands how to properly analyze properties to guide you on potential profitable rentals. 

lol).Though I understand everyone else's viewpoints, I'm as the same mindset as @Douglas Middleton. 

It was infested with dead rats, other rodents and unlivable by anyone's standards.

I do agree with you that investors must absolutely consult with their legal and tax advisors before entering into any of these tax-deferral strategies to ensure they understand the potential risks involved, including the risk of being disallowed by the California FTB.  

Trying to understand it.

There are more moving parts between cleanings, reviews, keeping inventory of a furnished place, bookings, new people every few days, people not understanding the difference between an airbnb and hotel etc.

(I assume you owe nothing, or at least less than 50% as your mortgage will have to be paid off when you sell, not when the buyer finishes paying.)My understanding is you sell $400k property with seller financing.

If our standard lease wasn't in effect, we would default to the in place agreement. 

Thank you for help in understanding capital gains 

If you notice, you will discover that the price we are offering is far below standard price, this is enough reason for you to know that we are not after the rental fee but the absolute care for the property.