I will give an example, in San Diego at 50% rent ratio (experienced investors should do better than this), the prop tax alone is 20% of the rent.  

This has always been the big downside to syndications - no tax deferral available without starting to daisy chain cost segregations and bonus depreciation.  

It saves 5% on the tax rate. 

Is taxes going to be higher today or higher in the future? 

Lawyer said no reason why contract needs extended cause they have had optimal time to secure funding to close on or before contract closing date. 

Keep in mind that they will be looking at your tax returns.  

Taxes have to be collected somewhere.

All of these things are great for you as a customer, you are protected against all kinds of bad things happening on the jobsite.Plus your finished project will now be legal in the eyes of the City and your Insurance Company.and they pay their taxes.  

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).