I like the idea of selling shares to pay down the mortgage I'd have on it or use it for the next purchase, maybe a 1031. 

A little bit about my experience in Real Estate… I started a couple years ago doing some house flips in Detroit ( It was a 2 year plan) then decided to sell everything, moved to Washington DC which can’t afford anything in the DMV area but last year I purchased a very nice 3500 SQFT Duplex in Shaker Heights, suburb of Cleveland. 

Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule.

Ed, The deal fell through on the land we were going to purchase. 

So, with no foundational knowledge of real property, and no capital, his only alternatives are (1) “bluff” the homeowner into thinking he has the money and intent to close the purchase himself and or convince the homeowner he has an extensive list of cash ready interested buyers (“partners”) with whom he’s done dozens of prior deals or (2) pack up shop, write off the money invested in mentoring to a worthless investment, and decide IF real estate is right for home.  

That is not an issue.the question is how to coordinate the two sales and one purchase. if it’s too complicated, may just pay the capital gain tax.Quote from @Bill B.: You lost all hope at step 1.

I have purchased properties in the past with owner financing.

I run into this situation a lot where owners buy a property and then they move out for some reason and want to rent out the property but unfortunately the property was not purchased as an investment and the income will not support the expenses every month.If I were you, I would look into a different strategy so you are able to have some positive cash flow every month.Have you thought about furnishing the unit and doing Air BNB, or furnished mid-term rentals?

My goal is to purchase one or two homes this year to fix and flip.

I settled on NBT bank for my 7 family purchase.