They also didn’t like the idea that Phase 2 investors would dilute their position when they come in later.What are some fair and effective ways to address this concern?

Borrowers like that.Since money is the lifeblood of all house flips, I consider this a win-win for everyone.

Hoping to get help from like minded people.After lurking in the back ground for years, we recently started purchasing property in the greater Birmingham area.  

Have an intro call with them tomorrow and will likely move forward for 2023 taxes (have W2, a duplex and an Airbnb beach house)

Sounds like a great deal.

I'd like to introduce myself.

I like @Chris Seveney and @Shiloh Lundahl's concept for a fast sale that you can do a lease option on.

Midwest spots like Ohio or Indiana could work—think Dayton or Indianapolis—where $80k-$120k can snag a 3BD pulling $1,200/month rent with $500-$800 in cash flow after expenses.

These small towns are a niche market like investing in STR or trailer parks.

In your case you've got to weigh the cost of the cost seg and benefit of the depreciation deferral vs simply paying the tax on the difference.Many of our clients will use Delaware Statutory Trusts to round out their exchange in situations like this.