While we don't know the extent of his recapture/tax liability, you might master lease and option the property.
It would solve some immediate problems.
- control of the property would switch to you.
- no change in title = no tax liability for him until the option is exercised. This gives him time to possibly find a replacement property under IRS-1031 rules.
- gives current owner cash that's not currently taxable.
Make sure you properly secure your option and lease. Without securing your rights, the deal could unravel down the road when memories get foggy.
You'd still retain the ability to secure better financing with the park (under new management) producing a better NOI. Better NOI receives higher appraisal value and therefore higher loan amounts.
Keep in mind, some lenders won't look at anything under $1MM in this asset class.
Keep us posted,