So $2100 total.

Will I essentially be taxed on the sale of Property #1 ($375k - $280k  totaling $95k profit) regardless of the $56k (showing as equity in Property #1) being from another loan? 

I'm not interested in buying a total clunker that would require a complete gut job, and I intend to purchase the property in cash with no lender.

They assured me it totally legal.

If I want to generate $100,000 of passive income, at $200 each thats 500 units, which could mean a total mortgage of $25 Million.

         $15,000     Total cost                                                                                                                  $80,000Based on comps land should be worth                                                             $170,000**The land I'm purchasing is 3 acres. 

So the attorney either doesn't get the nuance within a "safe harbor" or more likely they understand her total picture better and know her situation.

At that point, you'll have to get gross numbers like total monthly rent and current NOI, and base your offer on that. 

Google AdWords and Bing Ads are your best bets if you have a budget.

Other unit is where I see the value add for possible BRRR.Both units currently rented for $1,350 per month ($2,700 total revenue per month)For evaluation sake, I calculated that I had to pay full asking price, $3,000 annual taxes, and $2,000 annual insurance.Self manage the property, 8% vacancy, $100/month maintenance expenses, $100/month Cap ex, and $100 utilities.$64k down, and another $15k rehab to bring the 2nd unit in line with the 1st.I come up with cash on cash return of around 9.3%.