As someone originally from New Jersey, I am interested in returning to the East Coast and investing closer to home.

Rare anyone redeems 100K house, but I can almost guarantee if you rehab it before the two years is up, someone will show up, redeem and you just remodeled their home for FREE.As far as hard money loans go typically around Houston you'll pay 2% origination fee and probably 12-14% interest for six months. 

Do these tax advantages disappear when the original owner passes away and hands the portfolio to their children?

The LTV ratio also dropped to 70% from the original quote which was 75%, which impacts the cash-out amount. 

I'll have to check the original documents to see if they're allowed to do that and I missed it.

I don't even want to circle back with the lawyer I originally engaged as I was not impressed with his support or follow up.  

The mortgage will stay in the name in which the home was originally purchased. 

The original mortgage was 144,000 and I heard that the junior mortgage falls off [it was a tiny 32K].

@Chris Seveney as a Note investor (I'm not sure if you originate or purchase notes) is Propstream a great way to identify real estate investors/ capital investors (ie: private money)? 

While I call Florida home, I am originally from Baltimore, MD, and I also run a small real estate team there.