Yes, do the tax exchange if you can.  

On your tax return you would report the proceeds, subtract costs and proceeds paid to seller, then the remaining profit would be your flat fee.

This is day to day spending, rent collection, tax/utility payments etc. (1) account for all security deposits, (1) account for parachute fund, capex items etc.

Unless the borrower is self employed and takes a lot of expenses to show lower income on their returns then it usually makes sense to pay a couple thousand a year in higher interest (you can pay like 4,000 a year in additional interest for DSCR if you are saving 30+k on your tax bill kind of math lol)

At least now your tax basis is $220k ;-)  What was the extent of the repairs?

Do you know if that could work the same with something purchased at a tax auction?

@Roger D Jones and @Dominic Mazzarella hit it on the head: try seller financing first and see what his cash flow needs are and/or if you can reduce his CG taxes. 

My clients tend to have net worth of 1 million to over 100 million that are individuals.As you move up the net worth list cash flow tends to drop down on the list of concerns to maybe 3rd after wealth preservation and tax benefits.Residential is more of a work for yield play.

Those buying to mitigate year end taxes for the 80% bonus depreciation.3.

Consult your local CPA to calculate accurately and minimize your tax liability.