I know I will be taxed higher on income and it will be harder for me to find financing.

Basically kill your deal if they do not like it or feel there is a red flag.If you did not supply a tax return or lease they should not consider it a rental even if you do not own a primary home.

BUT you have less red tape, no tax returns, DTI, or employment checks are required.

I am researching a property that is scheduled for tax foreclosure sale in Wilmington, North Carolina, New Hanover county.The law firm that handles the foreclosure for the county says that the property will come with a “non-warranty commissioners deed” but the paralegal could not really explain what that meant.The law firm also says that they WILL sell me title insurance at the time of purchase.

Calling a broker to get a ballpark like @Chris Seveney said  or getting an online quote will always be the most accurate but if you want quick numbers - Nerdwallet has a "by zipcode" feature: https://www.nerdwallet.com/article/insurance/estimate-home-i...If you are working with a loan officer their different systems often auto estimate taxes and insurance as well - so you could ask them. 

Now you are looking to buy a property that may be overvalued or have to pay taxes to not do the 1031.Better is to get all important docs in the LOI stage prior to locking selections so you can feel good about the one or ones you plan on closing on.

When you die, your heirs inherit the property at a stepped up tax basis capturing the equity tax free.

My understanding on this is that if you build it unpermitted, the benefit at that time is that your property value likely won't increase because the square footage is not assessed to increase the value of your home and therefore the property taxes.

After this year's tax bill I need to do something different to reduce my tax liability.

My hope is to continue investing heavily into properties and utilizing their tax benefits!