Make sure you talk to a CPA and Attorney regarding all of the tax and legal aspects, someone who knows the state you live and will be doing business in.  

Congrats Jodi,Sounds like you got a deal and times it right Hillary ,I’ve been listening ok’ing at flood deals for a while now , from the deals that came my way the wholesalers are looking for 60-50% of the ARV , that doesn’t leave you much room for error , market correction or stigma of a flood home even in a good area .Take off 10% for commissions, legal  & closing on sale , you are looking at best a 12/20% return on investment .Now imagine if the mold situation comes or contractor goes over budget , you may be stuck holding a wet bag If your plan is a rental than at least you have a plan B in place For the best upside of 20% I’d stay clear Of course if you can purchase at 35/45 From ARV that may be worth considering IMO the Flooded homes are going to be in the market for a while - based on the fact many owners are just hanging on and not paying mortgages .

I'm purchasing and developing a piece of land with residence outside of Portland (in WA)-Cash purchase-Current LLC. in CA-2018 capital gains offset neededWe're (Wife and I) purchasing a SFD, remodeling and living there if we enjoy the area; flipping it if we don't enjoy the climate.Per the 2018 capital gains sold to purchase the property, we need write offs, being a cash purchase we don't have the mortgage interest write offs that would help, (granted we're saving that interest over the 30 cost of the loan which is fortunate so we can't complain).

The lease terms must be over 30 years but less than 99.A master lease has some of these aspects, but does not have the advantages of NNN leases where you can get a mortgage on it as it's treated as real estate.I know an investor who does these deals in NY who targets owners owning properties for a long time, don't want to sell due to capital gains, too old to manage the properties.

Where it gets legally weird is that her parents took over the apartment, as they were paying everything and the executors of her estate.

Hi Lane, I have to respond to your post because what you said is not the case.  1031's are a great tool in real estate investing to defer capital gains taxes and there are multi owner deals that you can 1031 into. 

@Andy Bondhus I don't know the legality behind any of it but I do know that a lender can offer a program with specific features, in this case escrow, and if you do not agree with it, they do not have to lend. 

Account ClosedWater lien has no legal right to the property, if you pay for it as a 3rd party.

I regularly volunteer for Denver Metro's Habitat for Humanity to gain some exposure with various home project experiences (drywall, flooring, painting, exterior work).

Little to no equity with a potential capital gain and depreciation recapture.I have a similar situation with a condo I bought in 2006.You can still do a low equity to zero equity 1031 to push forward the depreciation recapture and capital gain.