Also syndicators massaging debt to make deals pencil to entice LP investment and are now struggling with existing deals blowing up.

If it’s a new purchase and the sale triggered a reassessment then you can certainly appeal it if you think they overvalued it.

So I shorten my reply, remove some triggering words and my reply goes through. 

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

Tenant was using this as an illegal massage parlor. 

Over-inflating the purchase price to account for closing costs could be seen as fraud or could trigger issues with the loan approval, especially if the appraised value doesn’t match the inflated price.

Caveat: Rule of thumb is to not do more than 1-2 of these short-term transactions, otherwise, you could trigger UBIT. 

Once ownership is transferred the clause is “triggered”.  

I'm curious if any of you pulled the trigger and if so whether you have any observations you might share?

Transferring a property with an existing mortgage to your LLC can sometimes trigger a “due-on-sale” clause, which could require you to pay off the loan immediately.If you’re thinking about expanding your rental portfolio, switching to an LLC could give you more flexibility and protection as you grow.