So you'd pay tax on the $70K but shelter whatever remaining gain there was in the 1031.You can borrow less money and put more down. 

the other question about building a 4 plex, borrowing the 240k to build it @ 4% 30 yrs about $1600 piti, if my figures are right, making about $200 a door, is this a good investment?

I was the lender they were the borrowers and when things went bad their tenants stopped paying they could would pay for a few months then quit and then I took the asset.. lost of drama lots of marital discord .. was not pretty.. but I am not predicting those times again I am hoping that was once in a life time.. but folks that had free and clear assets even if they sat vacant they did not lose them.. that's my point.. no most of my friends that made it owned business or were presidents of companies that went public and got monster stock payouts.. remember I am from the Bay AREA...

The police may or may not assist, probably not.You will then most likely need to evict unless you want to bribe them to leave.   

Fayez Shantanu Most lenders do not allow you to borrow the balance even if it is in 2nd position.

What type of property would be best:I'd say start small only because you are still young, so perhaps intern with a really awesome wholesaler in your area or find one that is exceptional somewhere in the country and be their virtual assistant (scrubbing their lists or doing online marketing for them] What banks would be best to get a loan from should I need one:I won't worry about the banks just yet, focus on building your foundations and in the process, you'll get a good lender while on the journey to successBusiness and real estate books/ebooks I should read:MUST buy a hard copy of Rich Dad Poor Dad & buy the CashFlow board game [find a friend of yours who likes a challenge and play the CashFlow game with them-they might be a potential partner in your business in the nearest future] Pitfalls/rookie mistakes beginners make:Make a ton of mistakes!

If you do not have experience with writing commercial leases, I would seek the assistance of someone who does.  

I'm also looking for a mentor to assist me in this process.

*Note: this post is intended for investors who actively DO NOT automatically file a 1040 every year, unless they've incurred a tax liability.I'm wondering what difficulties investors who understand (have read the pertinent details of the tax code) have faced when engaging in investment opportunities that normally require an investor to furnish tax returns, and what solutions have they come up with.From my experience in banking, I understand that institutional lenders normally require a borrower to furnish yearly personal financial statements and tax returns.

It was a good lesson for me to leave this kind of work to professional that knows exactly how to assist you, and they guarantee that the result will be perfect.