It might be just be a knee jerk reaction by them (no one "Wants To" pay tax), and with the ever changing tax code, their viewpoint might be based on the 1976 IRS code, or something one of them picked up in 1973 watching Louis Rukeyser.Knowing the current Capital Gains Code and how it works as well as OWC payments (loophole others have mentioned above) might help you convince them sell.In a nutshell, it might be easy to change their mind (IF) you yourself understand the realities of it, and then have them run it by their CPA to make sure it's what they want.If "The CPA Realities of it" are not what they want--they will probably not budge (at this time), although an option to purchase might not be out of the question (for a kicker fee of X$), if that's what you want.Louis Rukeyser 1973: https://www.youtube.com/watch?

Trying to jointly do any deal, particularly a high-dollar deal like yours, requires serious legal support.

If you consulted a good attorney and you jointly came to the decision to create 2 LLCs then it might be the right decision. 

My lease say that tenants are jointly responsible for damages to common areas. 

She refused to file jointly before the divorce, so he filed after.

I could do hours of "research" on the ol' interwebs, build pro-formas, but still end up thinking "yikes" driving through the neighborhood before I even reach the property.Just search for the best BBQ joint in the town and make a weekend trip out there to eat and drive by the place.

All tenants are jointly and severally liable for the rent.

@Jason PiccoloIt is possible to joint venture multiple IRA plans into a single investment. 

I can lay it myself with a good pair of shears and knee pads. 

This is a somewhat long post of me explaining my strategy and asking for experienced advice on joint venture rehabbing...