If you buy a property for $80K - you will need to put atleast 10% down towards the purchase price ($8K) PLUS closing costs such as lenders fees, title fees, and insurance and tax costs.

I made an offer on a double, it turns out that it's on two parcels with two separate tax cards but deeded together. 

@Elliot Angus To structure this deal, consult a Qualified Intermediary (QI) for 1031 compliance, a real estate attorney for seller-finance terms, and a CPA to ensure tax deferral.

I've seen landlords held hostage for years by tenants who know how to manipulate the law.On the other hand, sitting vacant costs you the mortgage, taxes, utilities, insurance, lawncare, and other expenses.

- What are some hidden costs associated with purchasing unimproved land, such as property taxes, closing costs, or financing fees?

That’s not a lot of tax savings but it does give you $68k so you can put down 10% on your $650k home.

From a tax reporting standpoint though, I am curious why showing a profit is even a concern. 

As others have said watch out for property taxes and home insurance too. 

As long as you purchase at least as much as your net sale and use all of whatever proceeds are generated, you will defer all tax.

(So if the deal fell through I would have time to list 3 other properties I might buy.)Good luck. 1031’s are an insane tax advantage and Dave is very good at what he does.