A cash out refi is not a taxable event. 

.- Purchasing subsequent liens doesn’t improve rights to ultimately foreclose on the property as the senior lienholder would just pay off junior lienholders in the event of a foreclosure.Most of the institutional investors I have seen at the larger auctions were purchasing liens at a 5-6% premium last year (on a 9% note).

My understanding is also that loan proceeds are not taxed and therefore since we have only $11k in debt and almost $200k in equity we could afford to get a LOC or other low cost loan to finance the improvements and have a non taxable event with the little bit of interest being tax deductible. 

IF I were bidding this (I wouldn't) I would increase my final numbers by about 20% to cover any oooops that occurred under your watch.

Hi all, officially created an event for this!

So in light of recent events the chances of a smart seller doing their own financing may improve over past practice.Another form of seller financing is called a Contract for Deed. 

I would recommend attending some training sessions organized by the local realtor association with which you plan to align yourself with to help network with the local agents and familiarize yourself with the local loan officers in the area (these events are usually sponsored by the local lender branches) and the start to finish process in the RE transaction.

This lets them get paid out of proceeds from the sale with out you incurring a taxable event.2.

This is the original BiggerPockets event post: https://www.biggerpockets.com/...

You can find a ton of local meetups at www.biggerpockets.com/events