I'm a new Tax liens, deeds investor in the DC, MD, VA areas. 

Still some unincorporated areas so those would be county only tax, very rare to find oneEast Memphis 38117, generally solid, drops off a bit south of Quince.

Property taxes are a lot lower here (sub 2%) than in prime Austin. 

I have filed my US taxes yearly since then and declared my foreign and only income each time to the IRS.

My property taxes go up with no logical pattern (confirmed with other Indy investors) whereas my California properties go up 2% a year (Proposition 13) from the original property tax basis. 

But now I am being told that if I do a refi to pay them off I will lose the 'prop 19' tax basis on the portion of the property I buy from them, even if I move into it as my primary residence. 

The advantage to the seller can be the seller will pay taxes on the amount sold plus will receive the remaining amount in 3 years time, please talk to a Real Estate Attorney/Tax Adviser to confirm the advantages for the seller carry.

You could use term life insurance to offset taxes.  

We are interested in CPAs who have a good understanding of the unique tax and financial challenges faced by real estate investors in our area. 

And if you've lived in it for 2 out of the 5 years prior to sale then you'll get to take the first $250K ($500K if married) of profit from that portion tax-free.