There is LOT of deferred maintenance. 12 Units are in a better part of town.

I have no experience but from my understanding, these would be my guesses:1) No longer responsible for the maintenance or management of the property2) no more dealing with tenants3) guaranteed positive income (assuming all payments are made) and steady return on money.4) loan is secured by the property that they already know the value of5) lessened or deferred tax implications on capital gains by spreading the sale out over time. 6) chunk of change up front (down payment)7) balloon payment after designated note term for the remainder (assuming this is how it was negotiated) wherein they can take back the property if you can't pay.

If I purchase the exchanged property under a LLC, which I'm the sole owner of, will that cause any issues with the deferred capital gains?

Tenant remains responsible for any cost related to deferred lawn care, deferred snow removal, and deferred cleaning not completed as of the date in which the above requirements are met.

A lot of Californians are using this strategy to cash out of their highly-appreciated properties and defer their taxes for 30 years. 

Think ya'll bring up very valid points I think the idea just appealed to some psychological thing in my head that the money was still there, the interest is tax deferred etc. but since it's locked in a way it's still not there.

Consequently, if a taxpayer purchases a building which comes with the need to fix or repair a lot of deferred maintenance before being able to rent it, those expenses still must be capitalized; they are not a current deduction.Thank you.

I think I can speak for all of us when I say that we all agree that you should consult a local agent in your area and defer to them - and to just try to talk to your agent about what they're offering to a buyer's agent, whatever that amount may be, because it will definitely have an effect.

It allows you to indefinitely defer paying the taxes on gain and the recapture of depreciation.  

The lender may then qualify the borrower with a $0 payment.For deferred loans or loans in forbearance, the lender may calculate a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), ora fully amortizing payment using the documented loan repayment terms