How can I gain benefits from reading a real estate book?

., in general it's fine to contribute property into and distribute property out of an entity after a 1031 exchange is complete providing the transfer does not trigger a gain recognition.In your case it might be even simpler. 

Seller has homesteaded the property to taking large capital gains hit.

More likely they're just the servicer and someone else actually owns this note.A deed in lieu of foreclosure would gain you possession of the property and give you a better position to negotiate with Chase. 

It might be a good exercise to figure out how to pull out some equity vs selling it to re-invest in a different property that could be more passive income without all of the hassles.

looking to be a passive or active investor? 

After I do get enough equity, I am looking to get into rental properties for passive income.If anyone is in the area, I would really like to connect with them and simply get some helpful tips and tricks to getting started in wholesaling.I would also like to ask, should I go with legalzoom for setting an LLC or look for a local attorney to set up my legal entity.

Reminding the board of their own bylaws would help you gain an audience to resolve the dispute.

Anything you buy as an investment - if we define investment as increasing your overall financial stores, i.e. getting more money out than you put in - has to gain more value than its present day value, meaning that we have to believe that what we are buying is being sold at some kind of discount relative to its potential.

Buy the right asset in the right market and youll be on your way to true passive wealth.