@Sor Yang The funds will be wired to your account after you close on cash out transaction in your loan scenario. 

If so, this has no impact on you, @Frank Yang.

I played along, saying I am in the process of rehab for a buy/hold but anything is for sale. He

@Chheang Yang this could be right up my alley.

So it seems that from his 165K sale he is putting 35K in his pocket which is taxable, 45K into the new property in the note to the LLC and 30K into the new property on the 30K interest only loan he would carry.Is that potential to make use of a 1031 exchange in this case?

i thought this would be a easy question but I see I can't write it out right so let me try again I bought a house on a land contract with lawyers .my friend who I got it from owes $51,000if he sells it to me for $85,000 and pays off his own mortgage he has $34,000 left from the sale He has agreed to give me the $34,000 since he did make a contract with me and I got him outta a jam.now the $34,000 I get from him would pay back the 20% I used for a down payment (on a mortgage) plus give me $17200 extra towards odds and ends I didn't add in .I have made payments of $638 that's everything  a month to the mortgage company for 7 years I can talk to them anytime I want since he has giving them permission to.I have tested the waters on CL to rent my home for $1150-$1250 a month with a huge response , lets say my new loan payment goes up to $900 everything included I would still make at least $250 minimum profit a month .So I make all my money back (20% down ) plus say $10,000 plus  in my pocket and I would cash flow at least $250 a month I hope this makes sense , im just not sure if this is a shady deal since I set the home price to benefit me and if its legal 

In the unit above (a 2/2) the seller had used sharpie to mark measurements on the linoleum floors to change the flooring pre-sale. He

Gave him a quick solution to his problem, he needed a quick sale. He

@Yang Zheng Brandon made some really good points that I agree with. 

@Jeff Burdick @Wei Jie Yang @James Wise thank you all for the nice welcome!