In your scenario you'd have a potential tax event on that $200K difference.Here's a creative way to access most of that money tax free however. 

I love creative financing, who doesn't?

No active projects yet, but I’m gearing up to dive into multifamily properties, ideally 16+ units, with a focus on creative financing and NOI optimization.

And it might not look very tempting when put together.This part is for anyone reading this who never comments: My humble advice to anyone attempting to do creative finance is:Creative finance is for experienced investors who have access to capital if everything goes wrong.

@Charles Kao I believe he means attorney & Title Services that are familiar with non traditional or creative Transfers or Sales of property that don't include Banks.

I personally focus on DSCR investment loans and creative investment financing strategies, so I am happy to connect with you and talk about a game plan.

-Utilizing creative financing to minimize initial costs.

.- Background: Took some real estate classes before but really a lot of self learning on creative financing - Current Goal:To close my first wholesale deal within the next few months by learning from seasoned investors and applying proven strategies.I'm here to absorb as much knowledge as possible, so if you have any tips or resources, I’m all ears!

Instead of buying four $150k houses per year, try to get one $400-600k property (SFH or small multifamily) and get creative with higher effort strategies to cash flow in year 1 and 2. 

That's just a creative excuse by a lazy cop.