But you'll have to check with some legal counsel to be sure.If you do end up pushing them out, you can always do the same thing again, but structure it as a Lease Option, with NROC (non-refundable option consideration) instead of a down payment.  

In one instance one of my peeps and I figured out that the way we should structure it is that he paid down the (smallest) mortgage on property #5 just to stay Fannie, then the second those 3 simultaneous cash out refis closed (one didn't have enough equity to make it worth paying the closing costs), we cash'd out #5.

., it takes 1 to 3 months to actually get the physical deed from the county. 

As others have stated above, there is no difference for federal income tax purposes.That being said, your business structure should not be influenced solely by tax implications.  

first some background:I'm buy a property with two duplex, one of them has structural damage and I am going to tear it down.

It's completely open and has support beams holding the structure up.

Physically go down to the county and pull the deeds.

Build a network of wholesellers, RE agents, attorneys, etc. that may have access to deals and would bring them to you 1st based on your relationship and incentive structure.

I don't even have to physically visit the property.But, there are other ways to add value to a property, too, that don't necessarily require finding a screaming SFR deal.

If you want a tie-breaker,  you can hire a structural engineer for around $400 - they will give you a clear statement as to what is needed.Also, be sure to consider the age of the house and where you are lifting e.g. near a bath, kitchen or other potential drain line) - if it is an older house and has cast iron pipes, you will probably have some plumbing work when you are done lifting.