One is a federal credit union.

From some of the things you're saying it sounds like maybe $5k is the taxable value or the counties estimated value as opposed to the fair market value.

Real Estate Investing Abbreviations *REI Abbreviations* *AFD* - Agreement For Deed *AITD* - All Inclusive Trust Deed *APR* - Annual Percentage Rate *ARM* - Adjustable Rate Mortgage *ARV* - After-Repaired Value *BOM* - Back On Market *BOR* - Board of Realtors *CAD* - County Appraisal District *Cap* - Capitalization *CCIM* - Certified Commercial Investment Member *CCR* - Conditions, Covenants, and Restrictions *CFD* - Contract for Deed *CLTV* - Combined Loan To Value *CMA* - Comparative Market Analysis *COCR* - Cash on Cash Return *COF* - Cost of Funds *COO* - Certificate of Occupancy *CRB* - Certified Residential Broker *CRE* - Creative Real Estate *CRS* - Certified Residential Specialist *DBA* - Doing Business As *DCR* - Debt Coverage Ratio *DOS* - Due On Sale Clause *DOT* - Deed of Trust *DSCR* - Debt Service Coverage Ratio *FCRA* - Fair Credit Reporting Act *FFE* - Furniture, Fixture, and Equipment *FHA* - Federal Housing Administration *FHLMC* - Federal Home Loan Mortgage Corporation, Freddie Mac *FMR* - Fair Market Rent *FMV* - Fair Market Value *FNMA* - Federal National Mortage Association, Fannie Mae *FRBO* - For Rent by Owner *FSBO* - For Sale by Owner *GMAC* - General Motors Acceptance Corporation *GRM* - Gross Rent Multiplier *HELOC* - Home Equity Line of Credit *HML* - Hard Money Lender *HOA* - Homeowners Association *HUD* - Housing and Urban Development *HVAC* - Heating, Ventilation and Air Conditioning *IRA* - Individual Retirement Account *IRC* - Internal Revenue Code *IRR* - Internal Rate of Return *IRS* - Internal Revenue Service *L/O* - Lease Option *L/P* - Lease Purchase *L/S* - Landlord Seller *LIBOR* - London Interbank Offering Rate *LLC* - Limited Liability Company *LOC* - Line of Credit *LOI* - Letter of Intent *LP* - Limited Partnership *LPOA* - Limited Power of Attorney *LTV* - Loan to Value *MAI* - Member Appraisal Institute *MAO* - Maximum Allowable Offer *MIP* - Mortgage Insurance Premium *MLS* - Multiple Listing Service *MUD* - Municipal Utility District *NAR* - National Association of Realtors *NIV* - No Income Verification *NNN* - Triple Net Lease *NOD* - Notice of Default *NOI* - Net Operating Income *NOO* - Non-Owner Occupant *O/F* - Owner Finance *OO* - Owner Occupant *P&S* - Purchase and Sale *PITI* - Principal Interest Taxes Insurance *PMI* - Private Mortgage Insurance *POA* - Power of Attorney *PUD* - Planned Unit Development *REI* - Real Estate Investing / Real Estate Investor *REIA* - Real Estate Investors Association *REIT* - Real Estate Investment Trust *REO* - Real Estate Owned *ROI* - Return On Investment *RTO* - Rent to Own *SFH* - Single Family House *SFR* - Single Family Residence *Sub2* - Buying property subject to existing financing *T/B* - Tenant Buyer *TAA* - Texas Apartment Association *TAR* - Texas Association of Realtors *TIL* - Truth In Lending *TREC* - Texas Real Estate Commission *UBIT* - Unrelated Business Income Tax *UCC* - Uniform Commercial Code *VA* - Department of Veterans Affairs / Veterans Administration K Marie Poe, WDYT?

A 1031 exchange would be one approach to deferring federal income tax on the capital gains.

Hi @ art warren. welcome to bp where i have found a wealth of information and tips thru the podcast and many of the conversations in the posts. i too have a full time job in the federal criminal justice field and enjoy rehabs, upgrades, etc on homes. and i also know several guys who work for at bush int airport parttime for the flight and health benefits and held down a full time job working with me at the post office on the north side many years ago. now i am kicking myself for not doing the same back then or else i would also be retiring from continental/united also. well good luck and see you in another post.

That's around $10,000/year, which is a garbage pension IMO, especially considering pensions available through the federal sector.Thanks to everyone for their insight, truly appreciate it

The gain on the sale (~78k will be taxable to both Federal and AZ.

@Pat BurchAt current rates you could owe about $13,000 in Federal income tax for capital gains (20%) and recapture (25%).By doing a IRC Section 1031, you would defer paying that Federal tax and be able to roll over the full proceeds into the 2 properties that you are looking to acquire.You have to meet the strict requirements of a Sec 1031, like not getting your hands on the proceeds, identifying the acquiring properties within 45 days and settling in 180 days.

There are federal laws pertaining to interfering in a foreclosure, putting a tenant in there will complicate things and you'll be in hot water with that tenant.I suggest you stay clear of it unless you can actually buy it.

Sometimes IRS liens are only recorded at the Federal Courthouse, not the county courthouse.