Last but not least, rather than sell the properties to extract the equity, have you considered trying to place a second loan on the properties?

I'd look to extract cash and put it back to work in something else yielding more...

He studies the Internal Revenue Code updates 4 hours a day and is genius with staying in the lines of white and extracting all available business tax deductions. 

If not, you can walk all over him.I have extracted head-shaking concessions from weak agents.As to dual agency, I wouldn't recommend it. 

Your $137,500 flip profit is the new 25% "down/equity" in the property....your original capital/equity is returned to you.If you purchase+rehab this house for $475k in your example, because that's the higher 86% of ARV, you won't be able to fully extract your upfront capital.

Redfin has mls data you just have to know how to extract it

Hi All,As far as I know the likes of Zillow, Trulia and HotPads don't allow you to export leads (e.g. rental leads) to Excel or CSV.  You have to (at least I do), open up every email and manually make note of the pers...

This extract from the Canadian Tax Journal is becoming a little long in the tooth, but generally still holds ... when in doubt, ask your accountant.

But if there is any value in the homes, and you can extract it over time as you exit them, get boosting the rents to market, and maybe even get him to work on price a little , you can turn it into something .  

If the value is there, it can be extracted in one way or another.