@Jay Hinrichs Did you notice the OP was planning on "assigning contracts and flipping houses for now until I can build enough cash to purchase and rehab"?

In researching property taxes for properties to buy, I’ve noticed the combined assessed rates can be over 3% in some cases, particularly in desireable school districts.

@Daniel Dietz I think you'll find that the 721 or upreit exchange usually involves either1. the reit selling you a tenant in  common interest in properties it owns to complete your exchange.2.

In fact, this is such a common practice, that a lot of agents in my area will swear you can't negotiate this and that no matter what, the seller will end up paying for the buyers closing costs.

I first saw it in the late 80s in Palo Alto when houses were being bid up 20 to 50k over ask.. in really hot markets on the west coast they are common.. but I think most of the deep south although great market competing offers and offers over ask is still somewhat rare.. and as stated the other agents had never heard of an escalator clause neither had my agents so I explained it to them wrote it out for them. so when they presented it to the listing agent it was clear what we were doing and of course end results I only pay 1k over highest and best.. got the deal and its a stone cold winner :)  but I was not going to lose it as we had as I stated build the other two on that little street.. here is a drone of it.. pretty coolhttps://vimeo.com/263639790     

What percentage of UPB is common for them to loan against ?

use your common sense here.

Hi Stanley,This is a common question.

We are both extremely motivated by profit at that point so I feel like we have a common incentive to maximize that margin.  

Sorry for your quandary, which is probably more common than we think.