In a high-priced market like Denver and Colorado Springs here (or San Diego where you're at), there are plenty of people who find a whole apartment rent unattainable and will rent a room. 

@Dan BeckerMany times in high value areas, the tax liability isn't nearly as high as some would lead you to believe...Anyway, to you question:  no, there really isnt a great way for you to get the property and get the step up in basis.Honestly, your question doesn't make sense:  "Is there any creative deal structure that can be used so that I can buy and occupy the home including the assumed improvements, repairs and maintenance, while allowing the seller to preserve the step-up tax shield for their descendants?"

But $3200 was a bit high for me and messed up my numbers when analyzing. 

If you want a high occupancy rate, we could easily be in the 90% range here in Columbus (with lower prices).

A different and, for some purposes, a better statement of the conclusion is that parties will tend to want damages to be the remedy when the reason for breach is high cost (as could only be true for a contract to produce) and would tend to prefer specific performance to be the remedy when the reason for breach is sale to an outside party (as could be true either for a contract to produce or for a contract to convey).Consequently, it appears this piece, while admittedly interesting, has nothing to do with what we are discussing.I have not seen anything to date that indicates that a court would do anything other than order specific performance if the buyer has met his burden never mind considering whether the buyer intends to be an occupant of flip it.Based on the work product produced so far, I doubt I will be retaining you anytime soon.P.S.

All new LED lights and lite fixtures.

I would highly suggest that your father be present with the prospective applicants. 

These rules restrict the amount of passive activity losses that can be deducted against other income for taxpayers with high incomes.Form 8582 is used to calculate and report passive activity losses and credits.

Since the the housing market has appreciated so rapidly over the last few years, the wholesale business margins have gotten very thin and will continue to get thinner within the next year or two.If you want to start wholesaling properties with a lot of meat on the bone (profits), I would suggest looking East and Inland towards some of the areas where the affordable housing has shifted to such as Inland Empire, High Desert, Coachella Valley and any other markets that always tend to ride on the coattails of the Metro markets such as Los Angeles. 

@Minho LeeA couple of things to consider, if you are looking at Shrewsbury, Grafton Worcester etc, These are pretty high growth markets from what I understand although I'm not in that market I just have family there.