For an auction.com purchase in Washington you have 2 options. 

I wouldnt give any consideration to what the seller needs in order to break even in determining the purchase price.

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

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.

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

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

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.

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?

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.