More specifically, how many years of tax returns is needed to be shown to qualify for a cash-put refinance?

If you aren't a Real Estate Professional, I am not sure adding more to your portfolio, with the main intention being tax reduction, is the best option.

I have been driving for dollars and mining the county auditor's site for homeowners who are delinquent on their taxes.

This is all before title, tax, conveyance fee's, water hold, etc.

If so, you can use the 121 exclusion and save on capital gains taxes to sell the home. 

Taxes on stocks held long enough are treated as capital gains.

Similar endeavors are underway in Rhode Island and Telluride, focusing on assisting first-time homebuyers and developing affordable rental properties.One significant strategy employed by these governments is the utilization of tax-exempt financing.

@Dominick Tonnarini, The only issue with your plan is that you will have to pay a sizable tax on the sale of that property when you do sell. 

Once you have the building plans and projected budget, you can get a no-cost estimate on the tax benefits you are entitled to.

Looking for recommendations on the best way to find properties (distressed, tax delinquent, etc.), reputable contractors, hard money lenders, and wholesalers.