I get the benefit for me, but our market is extremely good now and rents are sky rocketing and vacancies are extremely low, so if I were to try to do a master lease for cash flow, why would a property owner do this?

Your calculations seem to be correct. 5% return is not uncommon but consider all the tax benefits and appreciation of the property.

I am not looking to earn a lot on this flip as it's quite cheap but if I can do it successfully, then I would've gained experience and a bit of cash too.

Also, make sure this conforms to the neighborhood, in some cases losing a garage and gaining livable space can cost value.As always, seek professional advice.

Seems like a combination of rookie landlords and short term gains over long term thinking...

And yes, that's another benefit of setting up the reverse correctly - The use of a single member single asset LLC allows us to transfer the membership of the LLC to the client instead of having to conduct another real estate closing.So the EAT would be an LLC that is holding the property after it's been completed and to finish your 1031 exchange you get the membership interest of the EAT that holds the property. 

Dane, I do not have a specific lender that I personally know in Orlando, Florida, that I can recommend to you however, the advise I would humbly give you is not to limit yourself to just lenders that are physically located in your area and definitely do not limit yourself to working only with banks and credit unions.Banks and credit unions offer real estate investors some major benefits (lowest rates and very good terms)  but their are a few major draw backs (limit on how many properties they will allow you to finance, lengthy times to close, a lot of documentation). 

And in every locality that makes up tenant-favorable protective policies like the ones you've laid out, OC always, always benefits.

Weigh how much to lose over how much you have to gain.

@Roger HurleySince you’re married you get that entire gain tax free.