Assuming the rent from the rentals is covering all costs and debt repayment, hopefully with some positive cash flow, it would be counter investing to pay either of them down.

Definitely echo the sentiments that $0 money investing is much more myth and marketing snake oil than being plausible.Closest thing I know to quick easy funding is a 0 fee, 0% credit card balance transfer but not everyone can command 30K plus credit limits and I wouldnt recommend that path unless you are equipped to handle that debt once the promotional APR expires

Vega SanchezIn a very broad definition :Purchasing the debt of a single family home or commercial property which allows you as the lien holder the right to collect the monthly payments. 

However, we're well aware that no traditional lender will be likely to approve us for a second mortgage so soon after acquiring our first one since it would make our debt-to-income ratio go through the roof.

Does this mean since the debt was discharged, or since the bankruptcy is removed from your credit report?

I realize I will have to pay gains on it if I don’t do a 1031 exchange in so much time, but I thought if I do flips, we have to always churn the money anyway so why not pay the gains and pay down debt quickly?

Or it could double like this random house in my city did since it's 2006 sale price:https://www.redfin.com/WA/Kirkland/134-8th-Ave-980...So you have to decide if taking on the debt is worth the potential reward, including your specific scenario limitations. 

Also, would purchasing an out of state rental property eliminate my option to be approved for an FHA loan on a primary residence in LA later on?

They did tell me that the auction won't be for at least 6 months and the property can be reclaimed up until the date of the auction if the back taxes are paid off.I've already tasked the owner with contacting the law firm and sending me an email with a breakdown of what's owed (I assume along with taxes owed, there are also some fees from the law firm, just not how much to expect)  After I get this, I'll be able to decide if it's gonna be a worthwhile investment.Assuming I decide to pursue the deal, how should I execute it so that I can finance the owner to pay off their debt without the risk of them taking my money, reclaiming the property, and then deciding not to sell it to me. 

I’ve enjoyed rentals but thinking may be good time get rid of my HELOC debt while prices have gone up a lot.