With all that considered, if I had just been trying to flip the houses I don't see much profit in either one once I pay commissions to sell.  

I talked to the company holding the ira and I don't have to pay the 10% penalty.   

Does this enable us not to pay capital gains tax?

You could always pay off the line of credit without any pre-payment penalties. 

The lender explained that the standard carve-outs include committing criminal activities on the property, failing to pay property tax and failing to purchase insurance for the property.

This means I would take over the loan and pay 2k/month on top of needing to come up with 280k.

They meet at the Coffee Grounds - they are very nice people.  

Don't get me wrong, there are some great VAs out there, but you have to find them, train them, monitor them and pay them well for them to produce anything above mediocre results. 

They will supposedly first pay you back your initial earnest money with interest within four weeks of signing their NEW RELEASE AGREEMENTS as a show of good faith if you get in touch with their attorney (send me a private message so I can send you instructions to get in contact with their attorney), and then the remaining outstanding deposit with interest within two months after that.

I am not familiar with who you are working with but always recommend vetting any company deeply before signing and paying -- those companies tend to have a lot of overhead they need to pay - out of your bottom line.