Then the rest of the investors split the remaining 80%, the percentage depending on the amount they invested.

Visited the remains of the Berlin Wall just a couple months back. 

Lets assume I have 100k of 1031 money.My thought is to purchase a replacement property - in this case a multi unit and live in the smallest unit and rent out the remaining units.  

They owe $70K on the first mortgage and did open a second mortgage in 2006 for $20K--remaining balance unknown. 

The time is ripe for waterfront properties on Hartwell, as long as it remains waterfront during droughts. 

In this example, would the winning bidder have to come up with an additional ($133,656 = $26,209 + $107,447) right after the auction to satisfy the lien holders, or would s/he be able to  "assume the lien" and pay it later?

Profit can be made in any economy...and yes, lost too, but if you understand and follow the three diciplines I listed above, your "loses" will be only your profit...and your "seed" money will remain in your hands.  

I have sat down pencil and paper and figured out exactly all costs , just leveraging my remaining properties is a little scary....

But if you're not satisfied, well, shop around...

Note that this condition does not require the loan to be fully amortizing, meaning that a balloon payment can be a component of a one-property exclusion loan.Second, the loan must have a fixed interest rate or an adjustable interest rate that remains fixed for at least five years.