If you're getting a refund of some of those funds, that portion would be taxable.Keep in mind that the full proceeds of your sale should be invested in the property(ies) you 1031 exchange into. 

Keep in mind I am looking for a low cost broker (no desk fee, monthly fee) given that this will not be my full time job.

@Andrea Y BryantSorry to hear but marriage is far from being on my mind haha, wish you the best of luck on the flip.

The problems are “deep” problems in crawl space, in the rooms it looks rent ready- that is how I and the realtor felt when we walked in: Clean carpet, rooms, kitchen, bedrooms, functional AC, and other appliances included in the purchase.

I figured this would be the place to ask a question about finding the best strategy for our next deal which would be deal #2! For the first deal we had 20% to put down and did a conventional 15yr second home mortgage ...

In my small unimaginintive  mind, I can only see 70-80k loans to make cash flows.

Hey @Marcus if you don't mind sharing, I'd like to get more info on targeting pre-foreclosures.

I am also unsure of a search function, I could have swore there used to be a forum search bar?

So in my mind, just paying extra principal beats using the LOC since I will save $4k by not using it ($10k in LOC interest minus the $6k difference in mortgage interest saved). 

@Dee Jay Understandable but keep in mind IL has some budgetary issues that they need to solve, take a look at city-data.com some cities are bigger than you think.