Once you have 5 properties recognized by Fannie then they will not do refi-cash-out - only purchase.

Congratulations on recognizing the opportunity that you have in front of you. 

Josh recognized early on that there was a need for relevant information and he created a way for users to share information.

I mean they have experience, ethics and a proven track record of making money doing what they do.

There is an industry norm that should be recognized.  

My past experience has proven that not all things are documented on these national search services.  

These aspects may be buried in verbiage which needs to be recognized as the rights of the parties, the general intent of the statutes that should not be significantly changed or modified at all.

In your case, if you have a gain of $50K, and you either trade down by $50K or more or you pull cash out of $50K or more, the 1031 Exchange will not provide any benefit and you will recognize all of you taxable gain.

You just have to believe and be willing to do it without having others around you locally who have already proven that it works.  

this is not friendly unless you are paying a premium rate because most banks or even hard money lenders would not even do this, regardless of your credit.i guess my point is that your friend may not know enough about real estate to recognize the high risk of the loan.