They pay themselves good "salary" from the loans they get.

I'm assuming I would have to pay it off if I won the house. 

From what I understand, a 1031 exchange doesnt apply in this case, and so I will have to pay short term capital gains on the appreciation ?

The seller's LLC pays capital gains tax and depreciation recapture, while the buyer's LLC uses the purchase price as the new cost basis.

I think the folks that pay for these programs have the wherewithal to simply cut a check and its no big expense to them compared to what they stand to get out of it. 

I find that I am doing just as much work using Pricelabs than I was pricing it myself, so why pay more.  

I think seniors would pay more and be easier on property, but I'm looking at both populations. 

One would think that a bidder would pay $45,000 in my example (since they are assuming the first mortgage), but they are actually bidding $225,000.

am working with them now and had the first policy (with Spinnaker) cancelled for nonpayment/late payment so we rewrote another policy (with Millenial) and having the same payment problem again but at least they are communicating that cancellation is coming. they want me to pay by credit card over the phone so the payment wont be late and cancelled again. but when i go to mycoverageinfo.com to check on status it shows its been paid.

Be patient, it's going to pay off.