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Option 3
Put your exchangor to work... ask him/her to find you somebody that wants to trade up their two rentals for a nicer home just like yours. Once you do that then you trade these two with the SS owners and each gets a house and a note.
Option 4
Give them 690 cash and a note secured by the SFR (actually two notes, one for each, no payments for one year, interest only for the second and third one, maturity at 3 years).
Put the house for sale (no rush here as it is breaking even).
That way you get a whole year to sell the SFR.
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Thanks for the ideas! +
Any other ideas out there?