Can I avoid paying capital gains tax some how?

Would you suggest refinancing or saving to purchase my second property?

A bunch of muni's (tax free), some treasuries, VOOG and maybe 10% to dabble in real estate. 

This will help you get experience and save up some money as well.Finally, I recommend you invest in an area you can cashflow even if it is out of State.

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.  

I moved from NorCal to live and invest in Reno, NV because I still wanted to be close to the Bay Area but wanted to have much more favorable landlord/tenant laws, low property taxes (that don't reassess on the sale), consistent diversified job growth, and land constraints for higher appreciation. 

They specialize in tax deed purchases, rehab, tenant occupy then cash out and refi and repeat the process.

You need to check with your State, in Florida you will have to pay sales tax on any rental agreements of 6 months or less so check for any possible sales tax liability.

Property cash flows very well and has become an excellent tax shield with my other properties.

Not only that but I also would like to connect with everyone, investors, private lenders, loan officers, tax consultants, attorneys, contractors, property managers ETC.