What is your concern as it relates to Dodd-Frank?

My biggest concern for you would be getting in over your head.

Individuals or concerns that provided funding, originated the obligation.

Not concerned about the details of how and why they bought this but an opportunity has come up, I think..Property is vacant and they are just racking up the unpaid taxes and nuisance liens and now they want to give me this property- JUST TAKE IT!  

My concern is if I tap into my equity to get the down payment money that the payment on my heloc could keep me from qualifying for the mortgage on house 2? 

As mentioned above, a live in flip is a cheaper option but if you were to do that I wouldn't worry so much with capital gains taxes, I would be more concerned with how fast can I do it again!  

I am not concerned about credit, but I do not have large down payment either.

My model is buy and hold and currently I am not extremely concerned with cash flow in the short term, but rather focusing on long term wealth, residual income in retirement, and setting up my heirs for the future.  

I'm just concerned about paying a little more for it than what the bank thinks it's worth. 

Like mortgage defaults, and other debt obligations, non-payment of rent is a civil matter of public record and concern.