He could buy another investment property with the proceeds from this sale and refi the new property and do cash out to get the cash he needs tax free.In the original post, it is mentioned the seller is looking to get out of Real Estate.I don't think there is a way to avoid the taxes(even a 1031 technically delays them). 

I have an LLC, but rental properties were purchased prior to LLC formation and are not technically in LLC yet...getting advice from my accountant to close LLC to pay less taxes, (another question for another time, seems like the community is split on issue of to LLC or not to LLC). 

Anyways, the anti-wholesale crowd makes some good points and its been constructive for me, personally, but I think there's way too much focus and bitterness towards some of the technicalities.

So maybe technically a repair ?

Interesting on the 15 yr, because I technically don't live off my cash flows either, however I DO use those cash flows to acquire more, so I'd assume the 15 yr would eat away my cash flows so that I couldn't acquire as quickly.  

They cannot count my rental income because it is technically a single family home (renting multiple units out of a SFH is a very common thing in Hawaii).

Cha Yang Check with your CPA on something like this.  1031 tax law is extremely technical and if done wrong, can be an expensive lesson.  

I thought the price was too low and they haven't even technically listed their house for sale yet.

Hello every one I am a new member and to be honest I am not technically an investor yet.

It's technically not even part of Los Angeles.