We purchased the house about 3 months ago and are owner financing it.

As we all know, you are really paying for the commission in the purchase price. 

She sent me a letter from Commercial Property Advisors, Peter Harris, which stated she had approval for funds sufficient to cover the purchase price and below it listed a Wells Fargo business account showing funds in excess of the purchase price.

Purchase price: $240,000 Cash invested: $60,000 purchased this distressed duplex using owner financing for $240K and a $60K hard money loan for renovations.

I've got about $525K in equity in the property, but lenders have told me that I cannot get a HELOC to access that equity for additional purchases because the duplex was financed as an investment - they have said TX law dictates that HELOC can only be used on primary residences.

If you are coming in with 235k, you probably would not need much more, if any, to make the purchase.

To defer all tax you must purchase in total at least as much as your net sale.

Typically starting with a smaller rehab budget of $50K or less (maybe a max of $75K) and avoiding a 1 to 1(or higher) ratio of purchase to rehab costs is recommend when you are first starting out. 

I have a followup question - I will realize a lot of capital gain from this home in Idaho, so I think unless I purchase a new primary residence I will have to pay that capital gains tax. 

Purchase price: $62,000 Cash invested: $60,000 Project in progress: Off market dealPurchase: $62,000Rehab: $60,000ARV: $165,000 What made you interested in investing in this type of deal?