I've learned a lot in those two years and have wanted to throw in the towel a couple times but I persevered and have decided that I would like to get into REI full time.

Once you establish that, you can move on to, "well Jim, what are you looking for if you were to sell this place?"

My position is I dont have enough in reserves to qualify for another mortgage since I currently have five mortgages (basically I need about 28k in reserves and a little more for a soft rehab and closing costs to buy it with financing, I have about 18k liquid.).

For tax purposes I assumed it would be a simple capital gains tax on $42,000 however my accountant is concerned that the $122,000 that was paid to Wells Fargo is considered borrowed funds, meaning (I think), when I took the loan out originally, it was not considered income.

@Mike Hurney I am currently an owner occupant of a condo which I purchased through a MA state program, Soft Second mortgage (no pmi, subsidized).

The next time I'm going to Wells Fargo, I will ask them for sure about what terms are appropriate for each situation.Thanks.

They then sold the loan to Wells Fargo.3) The general rule of thumb is to have your LLCs located in the state you are investing in.

Maybe one of the "soft money" lenders like lima capital?

The thinner vinyl isn't truly floating on the soft underlayment. 

The soft sell is a better approach in my opinion, at least for me.