They will often get denied because they get some form of assistance.

I attempted to take out a equity line of credit from the multifamily last year, but I was denied by the banks I applied to.

He and I have traded messages and his advice is consistent with the deals I have done and the advice I have received from tax or RE attorneys when I discussed the matter with the attorneys.IMHO - 1031 deals are not a place to push the creativity unless you are prepared to fight with the IRS when they deny your exchange after the fact.

My contention is that Lloyd's would rely on the statute to deny liability for any additional damage. 

The cops can't allow them t do something and deny it to you.

I have never had 1 who denied giving it to me. 

I like to renovate a little better than the other units in my area so mine stand out a little more.Re:refinancing: you should run the numbers on those different scenarios and see if you're comfortable with the expected cash-flow + benefit of leveraging this property into others.IIRC, you cannot deny any Section 8 renters so it's more a matter of them applying vs you allowing it.

I'd hate for you to find out after coming this far that the FHA loan will be denied because the 3.5% down payment required will be coming in the form of a private loan.  

if they have enough sense to deny my offer they have enough sense to give me a ballpark of what they may want for their house

As part of a servicing agreement for the investor on the house loan there are certain protocols to follow.If for example a lender simply foreclosed without following all the other workout guidelines for a defaulted loan then the insurance company on the loan would deny the claim.If the current owners put down more than 20% when they bought then usually there is not mortgage insurance.General file flow is mortgage is past due customer service calls.