Or do you retain the license indefinitely and just cannot actually use the privileges until you hang it with someone?

The taxes are indefinitely deferred into the new property.

He asserts that even when the tenant makes a timely objection in 15 days and a subsequent demand for trebled amount of refund pursuant to 772.11 Fla Statutes, he is entitled to hold onto the funds, indefinitely, (in the account he is required to maintain it in.)

He is currently in jail, bail set at $25k.So, I see this as a golden opportunity, if I can figure out a way to get in touch with this guy and make an offer or better yet, the mortgage company (because I'm assuming he can't make payments indefinitely from jail), i can try to but this place.

It allows you to indefinitely defer paying the taxes on gain and the recapture of depreciation.  

On the investment side you can use leverage conservatively to continue to give you the maximum tax benefit (deferred tax through 1031 and additional depreciable basis) until you finally position one of your investment properties in such a way that you then sell either this primary or our next primary and convert that or a subsequent rental into your new primary intending to stay there indefinitely.  

The second you stop flipping you'll be draining the bank account, but with some good cashflow, you can live indefinitely.

This would defer the tax indefinitely.  

If you also use 1031 exchanges it can be tax-deferred indefinitely. 

Subsidize their housing indefinitely?