I should have included that I own a management company in the same city as the subject property so I will be able to do the following by running certain expense through another business:1.

I'd like to get everyone's thoughts on a theory I've been pondering....I'm in Central PA and the market is and has been red hot for quite some time. 

@Casey MurrayAshish and Natalie both provided an excellent idea regarding investing in the QOZ.I just wanted to touch base with you on some of the numbers in your post.Your clients may be subject to more than $140K in tax.They may also be subject to the 3.8% of Net Investment Income Tax.Furthermore, since you are in CA, I assume your client is also in CA, and they may be subject to California state income taxes.The seller may be able to offset it by using closing costs at closing to offset some of the gain.The more the reason to consider the QOZ.

It has a big fenced in yard and is in a hot neighborhood that has long been in the process of gentrification.

Subject too appraisals coming in at 85-110k/door. 

I do not know the area well but I don't think of Greektown as hot area for young professionals. 

Listening to BP Podcast episode 289 should help.If you give hime equity then the two of you would be subject to SEC regulations.However, if he simply lends you the money, then the two of you can agree upon terms that you are both happy with.

A oil fired boiler , a water conditioning system , an oil fired hot water heater , a 4 zone mini split  system , 2 sump pumps , a refrigerator and the stove .

I realize the answer to my question is very subjective and ultimately a personal decision, but I was just curious what others would do and their reasoning behind it?

The investor was supposed to by the property via "subject to" and resell it to him in a year when he was in a better position.