That last question is good too but I would not totally rely on the current owner and check with a local professional service or verify it myself.Who the hell is this guy anyway and why should I rely on his answer? 

Working with the right lender (and other professionals) can certainly make a huge difference. 

I really like this platform and I'm excited to learn more about real estate from experienced professionals but not only that; i'm excited to learn directly about all of YOU.

We haven't had a chance to plug into the REIA group yet and, in lieu of that, we were hoping to reach out to the BP community for professional connections. 

Instead of handling the concern professionally, John stated I expected results over night and that he did not want to work with me so he was refunding my money.

@Michelle BergeWas the property professionally managed?

If You are not familiar with the unforeseen circumstances under section 121, get a professional help. 

I have pages of questions that I have been finding answers to on the BP forums but there are still so many more and we will need to be talking with a lot of different professionals.

So, if there are any flippers/investors in the Sacramento and/or surrounding area that could recommend a competent and professional GC, that would be much appreciated.

I am guessing you haven't talked with a tax professional about this yet.