In order to defer all of your Federal, and in most cases, state, capitalgain and depreciation recapture income taxes on the sale of investmentproperty, you must meet certain reinvestment requirements.Generally, to defer all of your income tax liabilities, you must dothe following:(1) Acquire one or more replacement properties that are equal to orgreater than the value of the relinquished property that you sold(based on the net sale price, not equity)(2) Reinvest all of your net cash proceeds (net equity) received fromthe sale of your relinquished property(3) Replace the amount of debt paid off on the sale of yourrelinquished property with new debt or additionalout-of-pocket cash of an equal amount on the replacementproperties you acquireYou can always put more cash into your replacement propertytransactions.

BUT the prices in those areas mean you'll see virtually no cash flow, and since appreciation is never guaranteed, it can be a risky move to take on so much debt (or lock in so much capital) in hopes of cashing in on a sale in 10+ years.

After that sell the debt, or start reporting to credit bureaus to try and destroy his credit rating. 

(That would be mine)In determining whether to hire an attorney, consider a few factors;1) How likely is it that the Debtor is going to hire an attorney to represent them?

A brief resume, business experience if you have it, a financial statement or something showing your ability to cover the debt or a statement of rents.

By being a co-signer, that person has committed to pay the full amount of any debt or fully satisfy any obligation or responsibility.In effect, they are more committed than an investor who puts up only cash.

He shouldn't go into debt or lose profits to improve a neighborhood.

@Yoochul C. when you invest in notes you are investing in paper, aka debt or an income stream.

All it takes is some time on the phone and the determination to work out something that works for both debtor and creditor.

Point takers put themselves out there and try to be a middleman either for debt or a sales transaction.They really provide little to any value whatsoever.A good mortgage broker actually works the file actively and stays in constant contact with the lender.