After setting up an S corp, can you leave money allotted to maintenance in the comapany and not take them as profits at the end of the year even if you never spent it?

There is a system out there being sold stating that you can contact property owners who are delinquent before it goes up for the tax sale possibly buying the property for a token amount, assuming the taxes, recording the deed, & then turning around flipping it for a quick profit NEVER actually paying the taxes but rolling them into the price where it's still a bargain.Or buying the tax deed for pennies basically, recording the deed, then letting it go up for auction.

We can easily sell the house for $40k and I want to take the profit and put it right back into another flip - so should I do a 1031 exchange?

If you are rolling your profits to another property TAX FREE, then it doesn't matter what your taxes on it are, you don't have to pay them.

Which will not happen for what, 5 years before any real profits could be realized.

Then they will only get paid when they actually run the government so that it creates money instead of wasting it.Imagine that, a government actually turning a true profit and not sucking money from everyone they can.The other option would be that every year the citizens get to vote on how well their performance was and their pay is based on that performance.

I hope the mention is acceptable here; I don't profit if he joins either club.

Having said that, with a few changes in your real estate investing strategies you can still make big time profits in this big time bubble burst market.

I save for it, make it happen, try to make it profitable, then start again.

A possible provision would be that if your principle is lowered, whenever you sell you must give any profit equal to the amount of the reduction back to the government or bank who granted you the reduction.