I suspect the lien of the judgment could be transfer to a bond posted with the clerk of the court. 

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

Has anyone else found this to be true?

Currently all $200K is subject to self employment taxes ($30K tax bill).If taxed as an S-Corp, I could pay myself $50K as a salary, and only the $50K would be subject to self employment taxes ($7.5k tax bill).

Just be sure you can afford your next project before jumping in. 

If so, what would be your argument for that?

closing costs on the buy and the refi for example will be hefty - thousands of dollars on each. 

How SB-684Property Works // Lot & Unit Size Requirements · The lot must be vacant and in a single-family zone. · Each lot must be at least 600 square feet. · New residential units cannot exceed 1,750 square feet each. // Setbacks & Spacing · A minimum 4-foot setback is required from side and rear property lines. // Tenant Protection & Restrictions · If a home on the lot had tenants in the past 5 years, SB-684 still applies, but you cannot demolish or alter the existing structure.

@Aaron Landau just about everything in life can be negotiated. 

Or would the sale be considered to have already happened 3.5 years ago, the owner-financing be considered a loan, and only the interest on the loaned-out money be taxable?