Or should I hold (or refi) the mortgage I currently have at a higher rate to carry a mortgage on the exchane property? 

Carry appropriate insurance (property, general liability and make sure you are listed as additional insured under tenant's renters policy and 3rd party vendors).

Carrying on with BGC for all adults 18+!

It's not like people won't know that the property isn't in a flood zone; if they finance it through traditional financing then the lender would most likely require that they carry flood insurance. 

But having those rules on paper was like carrying a big stick—great to wield when needed but mostly a deterrent.

I've been researching whether or not doing a cost segregation study would be beneficial and while I don't think I could use the bonus depreciation for 2022 taxes a recent Bigger Pockets Money Podcast (#360) https://www.biggerpockets.com/... talked about carrying forward the paper loss for coming years and the benefit of doing one now as there is still 100% bonus depreciation which will decrease in the coming years.

If you are buying it using seller carried you might be able to use a HELOC to pull out some of the equity but not sure how the refi.

There was a company in AZ that was doing this but I think they were also carrying a portion of the financing.

They have connections to multiple insurance companies and can always find someone to carry the insurance.I'd also recommend using Obie Insurance. 

Hi,If I buy a apartment doing a seller carry back, how do I explain to the seller how they are protected if they carry a 2nd position note subordinate to the bank?