I try not to label things like owner finance or options.

They save as a PDF and you can label them.

If you purchased like this then you can cash out immediately up to 70% of market value up "till," your acquisition cost which consists of purchase price and closing labeled on the bottom right of your final HUD1.

While I'm 20yrs your senior, I'm not certain I qualify for the more mature label - definitely not if you were to ask my wife.In reading your post above, it would appear the significant short-term appreciation your property has experienced is a result of a frothy real estate market, rather than having acquired the property at a steep discount and/or forcing appreciation through improvement of the property. 

Once a property transfers to a new owner, the cap’s effect is lifted, and property taxes are assessed on the new owner at the just, market, or whatever label the state gives it, value.

That has a few vital ingredients: knowledge, someone you REALLY trust and the loan documents. 

If you are just starting to flip, don't do these deals.The class of houses i am looking at on auction.com are labeled occupied but they are not occupied.

Yet private money for the inexperienced rehabber seems to be the most elusive ingredient. 

If you have some savings I would get right to scooping up a property that is rediculously underpriced just because it carries the "Detroit" label.

It is always my preferred course and usually what I advise but in this case he probably has enough on his plate without also learning the process of bringing what I label as criminals to justice.