The tax treatment in such cases may vary depending on specific circumstances.

Depending on the seller, you may sweeten the deal, by letting them know that they don't immediately need to cash out, or can partly cash out.

Depending on the lender (bank or alt. lender) you have to look at origination fees....points, doc prep, interest rate, frequency draws are allowed/min. draw amount allowed per request, interest payments vs. interest reserve & whether interest reserve is capitalized to fully understand the true cash requirements.

I think it depends on the appraiser. 

I agree, I think it's contextual depending on someone's starting point.

it's going to vary depending on the market and what you're looking for to meet your goals. 

@David Sohn It depends on what your purchase price is.

If you did a cost segregation study on the property in the past, you may have to recapture the depreciation taken in the past.capital gain tax rates are 0, 15 or 20%There is also a potential 3.8% Net Investment Income Tax.Also, don't forget state income taxes depending on what state the property is located or your state of residency.Best of luck!

It will probably depend on your experience and connections with lenders.

Depends what you're looking for really, it might be worth discussing your strategies and goals with a broker, a national lender, and a local CU.