The $400k of Investment now shares $80k of Land and $320k improvements.So the Basis of this $200k investment portion is only $20k with $180k gain to be delayed in the exchange.

On 95% of my deals I buy them at around 70-75% under appraised value so I'm not into the properties for much after I do a delayed refi.  

This lends to going down the path of possibly providing the tenants with financing, installment contract, disguised sales, delayed closing transaction, equitable interest, refunds, lawsuits, loss of profits... etc.

Any other factors to consider to minimize the UBIT impact? 

This is good.Also, a little backstory:  the reason I mentioned insurance, was a developer I worked with in Colorado finished a condo complex in the early part of the 2000's, when there was a rogue lawyer whose business  model was buying a condo, tearing into the structure looking for any defects (as minimal as sheetrock screws might be spaced @ 12" instead of 8"), then going after the builder, which of course was actually the deep pockets of the builders insurance company.  

@Abdul Azeez I have an option called delayed financing.

@Natalie Kolodij, sounds like you have a good plan with options, and exit strategies.To @Jered Sounders point, you CAN delay moving into an owner occupied property if doing some rehab based on Fannie Mae's Homestyle Renovation Loan.

The cheapest minimal house nor for sale in SillyValley is One Million bucks, perhaps a Stanford professor could afford it, but wouldn't want to!

Young people who are traditionally the most active homebuyers are delaying marriage, kids and mortgages .

Currently, I have a large cash position but am looking for minimal cash down deals.