According to the IRS Office of Chief Counsel, a foreclosure on a rental property does indeed constitute a fully taxable disposition, potentially releasing previously suspended rental losses for deduction.Consider a scenario where a landlord purchases a property for $1 million, financed entirely through a mortgage.

You might also meet someone that could be a potential business partner.

I'm new to the wholesale / fix&flip / rehab strategies for buying & selling properties, and one of the main barriers to entry I run into with potential interested investors are the capital requirements to start their first project. 

@Tabb PittSeller financing provides advantages like drawing in a bigger group of potential buyers, bargaining for increased selling prices, and potentially gaining interest revenue from the loan.

what else would you ask the operator as a potential LP?

@Marshall Hooper FB is just another mean to reach a specific destination (aka audience).

The 3 condos are under-rented and cash flowing at about $1,800/month combined positive after all expenses today.At 75% LTV... refinancing the condos alone (assuming a value of $900k) would put the cash out potential amount at $247k.

Reach out to @Michael H.

I would suggest at least have a chat with some local realtors/investors to familiar yourself with the neighborhood and growth potential. 

Feel free to reach out and ask all the questions you may have!