That will lead you into most of your disposition here based on the story.Paying for a loan comes after you conduct due diligence.  

Basically, as an accredited investor, you plunk down your money, sign a bunch of paperwork and let them deal with the property from identification and purchase to operations and disposition.

The other half, (draining existing Freon, disposition, and refilling ect) was not covered as they do not insure Freon. 

You will learn a great deal about acquisition, rehab, maintenance, management, and disposition of investment properties.

We do not know what the balloon term or amortization is.Does that mean the only disposition of the loan is foreclosure?

SO approximate acquisition to disposition was about 130 days, give or take, not too bad considering the initial issues involved. 

California's current income tax withholding law enacted in 2002 and effective January 1, 2003 under Governor Davis requires a mandatory income tax withholding requirement of 3 1/3% based on the gross sales price on the disposition (sale) of real property under certain circumstances.

You would only subtract routine permissible selling expenses such as:Permissible Selling Expenses and Closing Costs: Owner's title insurance premiums Escrow agent, settlement agent or closing attorney fees Real estate agent’s or broker's commissions Finder fees or referral fees 1031 Exchange Qualified Intermediary fees Documentary transfer taxes Recording or filing fees Attorney fees and costs related to the disposition or acquisition Tax advisor fees related to the disposition or acquisition You would NOT subtract any non-permissible operating expenses or costs nor any lender or financing related costs such as: Non-Permissible Operating Expenses, Lender or Financing Costs or other Closing Costs: Financing or lender costs such as loan fees, loan points, appraisal fees, mortgage insurance premiums, lender's title insurance policy premiums, and other loan processing fees and costs Prorated Property taxes Prorated rents Insurance premium payments Security deposits Payoff of credit card balances Repairs and/or maintenance costsBased on the numbers that you provided, I'm guessing that you traded down enough so that the 1031 Exchange will likely not provide any benefit. 

See Texas Tax Code Sec 34.03 Disposition of Excess Proceeds, 34.04 Claims for Excess Proceeds, and 34.21 Right of Redemption.

For example, suspended passive losses are released upon the disposition of an activity.