There is no issue with funding more than a sale price, the balance remaining is cash to the buyer.

I would be able to pay off my seller $1.4M and be left with remaining net proceeds of about $400,000 for the next deal.

I'm assuming that the assessor / engineer would be able to calculate the remaining useful life on major components?

Does that mean even after the 120 day IRS redemptive period, IRS liens remain with the property and must be settled at sale?

And in addition, they would smile knowing they helped the remaining generations for years to come they wouldn't know or see.  

If the borrower is vacating a residence that will remain occupied by a co-borrower, the borrower is permitted to obtain another FHA insured mortgage.

Just totally guessing on your numbers but I would say that if you don't re-invest the money and get at least 20%+ ROI then overall you would remain cash flow negative.2.  

Some of the plaster will be removed to expose interior brick walls, however a lot of it will remain, assuming I can make the wall look nice enough.

I drove through part of Marina, CA last month and the remains of the base there was haunting.  

That is the only time in my career that I've used ratios.To provide some additional examples which may provide insight into why this is a questionable practice in my opinion:- I recently purchased a $300 kitchen faucet for less than $100 (it was the last remaining one on the shelf and so was on clearance (the model, although a top rated product in this price point had been discontinued by the manufacturer - although more likely just the model "number" was discontinued, but that's another topic altogether).