So we would buy the aceage and since the legal descriptions still called out lot and block we would just start to deed out the lots to get them on the tax rolls and the Assessor would change the maps. 

These two things can do worlds of good for a high net worth investor looking to maximize tax- deferred/tax-free growth and minimize general taxes from operations.

@Jun Lee One pro that I can think of a solo 401K is there is no UBIT taxes when an asset u invested that had leverage sales.

I am doing this now and included Seller's transfer tax.

Quote from @Francisco Milan: Your tax bill ?

Why another for taxes?

It's low risk and tax free on the gain.

@Renee R. just a heads up that there can be significant tax implications to hiring a property manager vs. self-manage.

A subsequent cash-out refinance of the replacement property (e.g., $250K on a $1M property with a $500K loan) is treated as a loan and generally has no tax implications related to the 1031 exchange.

Not only will you lose your property tax exemption, but you may need to secure LTR tenants.