@Karin CornilsYou can use a cash-out refinance on property A to provide capital for property B or potentially get a lender to do a "portfolio" loan secured by both properties.UDFI applies to income associated with the property acquired using the debt instrument, so your statement that income from property A would not be taxed but income from property B would is correct assuming a property B only note and not a portfolio loan.The bottom line is you want to get a CPA on you team who is familiar with these topics to help you strategize.

Not many financial advisors are familiar with the instrument here in Indianapolis IN. 

A 1031 into maybe a passive instrument like a DST would offer indefinite deferral. 

@Ben CoerperAt least one borrower must occupy the property and sign the security instrument and the mortgage note in order for the property to be considered owner-occupied.

I have about 7k in savings but I was wondering if I should use a HELCO or some other instrument to fix the plumbing issues?

If you are asking if that contract is used as the instrument to assign, the answer is no.

Is he just ripping the rents on you.. do you have an assignment of rents clause in your debt instrument? 

It's analogous to learning an instrument: you get out of it what you put into it.

Yes, there are investors who purchase first potions mortgages and deeds of trust as well as second positions along with all types of other debt instruments, for that matter.

I can't imagine the note and mortgage instrument going away just because the lender didn't call the loan due.....but maybe I missed something on that.