I have to pay capital gain tax on the $50k surplus. 

I use Vinyl strip flooring from Surplus warehouse.

I can see where there will be an increase of properties for rent and surplus of properties for sale.

Very large budget surplus my friend!

@Dave DeMinkDave this is a great question and every operator runs their fund a different way.Personally we only raise enough cash to close and run the property, we don’t like to raise surplus cash.We offer a 6% preferred return but it is not mandatory and I make our investors clear that our returns are “blended” over the long-term.Which means they expect a smaller return the first few years as the property is being re-positioned and stabilized, then once that’s done we start to knock it out of the park with higher than expected returns.So long answer short, talk to your investors, let them know your short term and long term vision and what that means to them and their money, you shouldn’t have any issue and everyone will come out a little richerCheers,Dj

Now there is a surplus of inventory in that market.On the other side of the coin, 2-4 units which is my speciality, we are seeing a lack of inventory and everything is multiple offers over asking price. 

If you can have a lower balance for a majority of the month, you’ll save a great deal on interest.Allow any surplus to remain in the account to pay down your HELOC balance back to zero.

They will most likely have to send this to what is called the Excess or Surplus Lines market. 

It was sold for $155,000 and I only received $800 in surplus from the trustee after they took their fees of over half.

And if your statutes are like ours, any surplus from the mtg foreclosure goes to The Owner Of The Property at the time of the sale, regardless of who the original mortgagor/Owner was in the past.