If you sell the condo, you will have a taxable capital gain.

However, you would have to exchange into a property greater than or equal to $800k in order to avoid taxable boot.

By that, I mean they use it to defer their taxable gain on a specific transaction and it ends there. 

Germain, a federal law that spells out what violates DOS and what does does not.All that being said, I have seen af few generic deeds of trust in CA, from national hard money lenders, that have clauses about defaulting on junior liens as cause for DOS.

Hi AllHave a ~1.8 mil property available at the heart of the chinatown in my metro area available for sale.Looking at 7.29 cap with what I could conservatively imagine to be lower than usual vacancy rates for either the 10 units or 3 storefronts.googledocs with my completed PropertyAnalyzer here:http://bit.ly/17z72gwETA: County gov. estimates Taxable Land Value ($) 450,000Taxable Imps Value ($) 879,700Taxable Total Value ($) 1,329,700Location is what interests me the most regarding this deal.Is it recommended to invest in something like this mixing retail and apartment units?

To @Andy Wong's point, credit unions are able to give much more favorable interest rates because they are not-for-profit organizations, which means they don't pay federal taxes.It's really kind of an unfair advantage that credit unions have over banks (and this is part of why banks have a really hard time competing with them)...

The federal government is buying up houses in town due to the hurricane and repeated flooding over the past 3-5 years, hurting house values.

Know the laws & regulations (State & Federal) that govern note investing. collection & enforcement of debt.4.

I am concerned about my insurance coverage and the affect service or support dogs federal laws has on it.

There are some federal programs that are available to help underwater property owners.