My "deal" is an acquisition of a Class C- multifamily property in Tempe that I would purchase with short term construction financing, renovate and refinance into perm debt and try to recapture all or part of the initial equity. 

@Steve VaughanThe "music" can't stop if the Fed plans to continue paying its debts.  

Foreclosure actions wipe out some of the property owner’s debt, like the original mortgage (taken out at the time of the home purchase), HELOCs, and second mortgages.

Maybe he will make it so there's no waiting period to buy more real estate using a conventional mortgage following a bk, so we can all get in on how he's been doing it for decades. 1) Form Chris M #1 LLC.2) Buy investment property. 3) Turns out it was a lemon.4) Chris M #1 LLC declares bankruptcy, debt is discharged.5) Form Chris M #2 LLC.6) Buy another home.7) ???

The bank won't let me pull out all of the equity because it will push me over the 40% for debt to income ratio.  

I am seeking non-recourse bridge debt under a 1M and am finding that space quite a bit different than the 1-3M lending space.  

Initially our goal this year was to eliminate the last of our liability debts, establish an income (to count towards our bank credit) and save up for another down.

Immediately after buying Prop B you do a refi or 2nd mortgage on it and take the cash out to pay yourself back for the expenses incurred in improving prop A.The second way would be to tap equity on Prop A to improve it and then sell it have the new debt paid off as a mortgage lien upon sale and then complete the purchase of prop B in the 1031.Industry preference is that new debt is taken after the completion of the 1031 so there is no way the service could construe that you took out the debt as a way to access profit outside the exchange.  

I have a sizeable down payment saved, with little debt, and I already have a mortgage on my current horse farm, that helps pay for itself.

Gross income 4x PITI, 800+ credit scores, no other debt including student loans.