If you can do a renovation loan with 203k or a homestyle loan to house hack a 2-4 unit multi-family, that typically has the highest potential for equity gain with the lowest cost.  

They might can give you some valuable information.

Trying to bend the rules will always come back to get you and could end up costing you more at the end of the day than any benefits you gain from it.

I've heard 10%-20% is the average net gain but I just want to be more clear about it. 

I think this is generally a good post but, a couple of subjects warrant comment (opinion...which yes, I know how valuable anyone's opinion may or may not be).* In my world (Bank) a "Foreclosure" is a property/loan that has a filed notice (Often referred to as first legal) that a foreclosure has commenced and is somewhere in the foreclosure process between first legal and sale (or post sale redemption).

Keep for at least a year to get capital gain rate.  

Thank you for the valuable feedback.

Investing as an LP in syndications/funds can be a great way to gain real estate exposure with minimal time commitment.It's key to invest with the right sponsor that has track record of delivering returns (ideally been through at least one downturn).

Quote from @Merny Pierre: I'm following this thread, Thank you all for your valuable input.Where can one go to find hard money lenders in their areas?

For the seller (John) to defer capital gains via a 1031 exchange, the sale proceeds must be reinvested into like-kind property within 180 days.