Use proceeds as down payment on higher quality house maybe even new house, less repairs, can look I.

I'm second guessing that decision now and would feel a lot better if I paid someone to review things to make sure it is being done correctly since my friend does not do this as his day to day.An agreement was signed prior to my sale, and assignment of the sale contract and escrow sent the proceeds to my friend.

From 2000 - 2002 I was syndicating mortgage loans as fractionalized and I was proceeding under the assumption that a debt was NOT a security.  

The small claims court amount as I understand is 10k max, if I do proceed with CSLB will it negate the claim if I win the case.

The owner gets cash, the investor signs a sales contract with the owner, and then proceeds to redeem the property and takes possession through a regular sales transaction.  

Unfortunately, the cash-on-cash return isn't the same due to the interest rates.Should I proceed with the purchase now, or wait for interest rates to decrease before re-entering the market?

Here’s a summary based on the responses:Tax Rates and Holding Period:For flips (properties bought, rehabbed, and sold quickly), profits are taxed as ordinary income, not capital gains.The holding period is calculated from the purchase date to the sale date.1031 Exchange:1031 exchanges apply only to properties held for investment, not quick flips.If intending to use a 1031 exchange, I must reinvest the proceeds into a like-kind property within 180 days.Holding a property for less than a year may disqualify it from 1031 eligibility due to lack of demonstrated investment intent.Thanks again for all the helpful advice!

You can do the refinance in your name and pay off the line of credit with the cash proceeds after the funds come to your bank.

This is typically lower than I aim for but using the proceeds from a 1031 that had massive equity, and given the desirability of this complex, I made an exception. 

I decided not to proceed with the investing in OKC.