And in order to defer all tax you must purchase at least as much as the aggregate net sales price of your properties.These all can seem daunting but in my experience exchanges are more successful than not.

@Shmou N.ShmouYou can collect Rent and all other fees; Utilities, parking, or any other fee needed.We don't currently have a notification of the deposit but I will add it to our develoemt roadmap and you will see it in an update.

Seller will be taking a 30k+ loss with this route.325k with 50K down to seller, 3 years of payments $1600/month, and a balloon payment of 215k at the end of 3 years.Benefits to me: (1) 10k less downpayment, (2) with the conventional route, the loan would be at 228k after 3 years of payments, so I will gain additional equity with the 2nd option since I will owe 215k (presumably I will have to refinance at that time).Benefit to seller: she gets over asking price, 50K upfront and $300/month of cash flow.Does this offer and structure sound reasonable?

I have experience with minor to medium size rehabs but nothing as extensive as needed here.

Also just look online and steal some ideas...I used to Google Luxury Kitchens and then figure out how to do the same for less $$.You'll be fine with your experience.

I also make sure to specify in the lease agreement that I need proof of coverage before move-in and that the policy should name me as an “additional interested party.”

I can see the OP giving this a shot.. but it is risky he could end up making a few bucks and getting experience might just break even or he could take a loss.. that margin is very thin in markets that are not selling as soon as you get CO  thats been one reason we have been profitable very few homes have been carried past CO so financing cost are at a minimum.. you hold a spec home 6 months past Co and every month your losing money you will not recover.

Also there is an additional tax on the returns due to the financing. 

That's probably what I'd do first unless you just have no experience doing these deals at all. 

Look for one that has other listings and experience in the area.