All proceeds from the refi would go back to paying the HELOC. 

If they pay, I would not even care about the first claim? 

I usually only recommend those communities if the owner gets a lot of personal use at the property and wants to have the rest pretty much pay for itself, but not as a cash flow investment.Best of luck!

Thus, this borrower is offering 90% equity ownership, with the PMP receiving 90% of the cash flow to pay down the loan.

What I mean is, it looks like as a married couple filing jointly we pay $0 in cap gains on first $94k, so could we use a strategy to pull out $94k in cap gains then 1031 the rest?

Overall, I expected to pay no capital gains tax seeing as how we lived in the house 4 years out of the +5 years I owned it.

@Michell ChaseEvery state you own property in you need to register as you will eventually have to pay state taxes as well

I owe $345,000. after paying the mortgage and all utilities I would cash flow $500/month. 

I want to pay that debt off and  renovate the houses.

Pay Dirt Flips is her new business!