I knew that was not true because I had paid $780 a couple months before on a property in the same area and also my realtor told me that her clients had been paying that lower rate.

It might be true.

Goal is to have credit cards that you do not use more than 10% of.

Which is true.

Quote from @Jessie Matlock:One of my main questions is, I've been told I'll receive a K1 statement and that my monthly returns will be tax free. 1) Is it true they will be tax free? 

We receive countless gifts and thank you cards from borrowers all over USA. 

This is absolutely true . . . once the agent is rolling. 

(particularly true for single family homes)  Tom and Aaron may have different experiences.  

Assuming that's true, I would recommend looking for a replacement property (or properties - you can purchase multiple in the exchange) with value of at least $725K (selling price).  

However, my under writing due to the recent rate hikes shows large cash negative after a high LTV refi to extract the equity so I am not currently actively pursuing BRRRRS and I find this is true for many of the local investors that were doing brrrrs a few years ago.