I always try to avoid a balloon...

Also, there is unpaid property tax as well, will the property tax be written off or which party will be responsible for it?

OrSecond: buy a single-family fixer upper (400-500k) home, live in it for 2 years and either sell it to avoid capital gains tax or rent it out. 

Looking at it as one big project or would I have to claim the gain of the first parcel on 2022 taxes and second parcel on 2023 taxes (Split cost of 20 acres in 2 and show a gain for each parcel sold) ? 

Is there a software out there that you use or recommend to enter all of the expenses into that will help with totaling all the expenses accurately into proper categories for year end tax stuff or by each project?   

And in a 1031 exchange the tax payer has to stay the same. 

It may help if you give some details on the area, how much you are charging per room, utility costs, taxes, etc. 

@Bob Stevens that will be 8-10% net after all monthly reserves for property taxes, insurance, any owner paid utilities, vacancy (5%), property management (10%), and maintenance (10%).

If it's self-employment income, the net income on your tax returns from 2022 and 2023 will be averaged.

Assuming a 30% tax on the gain, I am ballparking that benefit to be a $480k tax shield for the children.However, the owners would prefer to sell now.