But the 5 year tack on for a 1031 exchange could also be seen as the penalty holding period to ensure that you have some ratio of qualified/non-qualified. 

You can fill in and mail to recipient using any form you find on any site (compliant with the format, of course), but in order to file with the IRS, you must either use their forms or use an E-Filing service.The IRS is currently part of the government shut down, so ordering their form may not help you out since your odds of receiving it by 1/31 are pretty slim right now.Most Efile sites are only a dollar or two, so in order to avoid the late filing penalties that you may incur by waiting to see if you receive forms from the IRS on time, it may be worth it to bite the bullet and pay the fees.The admin has stated that they intend to call IRS workers back, but I've not yet seen a date for that. 

Plus, the resident is supposed to file the declaration in court and under penalty of perjury if they are lying. 

It might even be worth giving an option to terminate their lease early penalty free if they want to move out.

Also anyone that is losing money and has to close shop wholesaling is not doing it right, you simply add contingencies so that you can pull out of the contract with no penalty's if you cant find a buyer in time, usually a 10-15 inspection/due diligence contingency starting the first day the contract is accepted. 

There is no prepay penalty so you could do a refi whenever you wanted.

Much simpler that way since they eliminate the risk of tax sale or penalties and late fees.As a smaller investor that can pay more attention to individual assets, I consider more aspects than just the risk of the tax sale.

The first wanted a 2 year contract to manage a property (it had a penalty if you decided to leave early).

And if that "alternative" type lender has an IQ greater than 70, they already know you're going to refi again in 3 months, and thus they will tack on an early payoff penalty. 

I am here to learn :) Loan amount: $50,0008% interest rate: simple interestAnnual amount received to the lender (no monthly payment): $4,0005 year balloon payment: $50,000No prepayment penalty