Purchase is subject to Buyer's review and written acceptance of final results of survey; of any lot-line adjustment/s, easement/s, and/or other agreements with adjacent property owners; and of the finalized property boundaries once any changes are completed.

If their expectations don't match with the prices then maybe it's not gonna be a good fit for us to work together.

Find a market that matches your strategy. 

Get multiple quotes and see if your contractor can match the price.

It still may not be a perfect match, but it's certainly doable and a good use of recycling.  

As a result those deals will not last long and more than likely will not even have a chance to hit the open market before an investor with the 'inside track' gets it.

Stick with it, I've done deals like this, and what with dealing with the IRS and the family, it's like herding cats, the end result is worth it.  

(The property appraised for ~$360000 when they refinanced two years ago.)The numbers work if the tax assessment stays at $165000 (current taxes ~$9000) If we buy it at $350000, should we expect that the tax assessment will change to match our purchase price, and our taxes double?

For example, a guy not wearing a hard hat could result in a $600 fine.  

I now provide client,s with  consulting and coaching in this field, As a result I have several clients who are active investors  or  Builder,s  looking for financing opportunities for their deal,s ., and new project,s.