If you had tenants in the property when this came to your attention, how would you go about working it out?  

@Terrell Hill@Mirzet MehovicI think Terrell makes a great point about it just being something you have to grow with as you gain experience.

TX is growing faster than CA and is business friendly and has no state income tax = they are gaining more fortune 500 HQs each year.  

You need to reinvest the total proceeds received from the sale (including debt paydown) in order to defer all capital gains.

Gain knowledge in all aspects evaluating and maintaining property - structural, electric, plumbing, etc.

Here are the details upfront:Purchase price-$135kDown payment-25% ($33,750)Target ARV-$170kWhat is the best, most cost effective way to pull out this equity gain and use it for a longer term, mortgage-like loan that I will use to purchase another property?

This is a subject I didnt really paid attention to at first and I would like to educate myself on it. 

The thing is you have to stay on top of things if you're going to manage the tenants yourself as I find section 8 tenants need a little more attention but nothing extraordinary.

That's interesting I will run that by my CPA  .. loaning money is ordinary income the tax deferment at least what I read is for dividends and cap gains.. did not see anything about getting out of ordinary income or self employement tax.. 

The big difference would be, with $20MM of cash in hand you will have people fighting for your attention and you will get more deals sent your way quicker than if everyone thought you were a tire-kicker.