Too many people from California moving here (estimated 80k per year) and they are willing to pay more and get nicer homes.

But any of those deals would not have worked today.A lot of people are paying more than 20% down for things to cashflow, or they are okay with negative cash flow for a while .

Be careful asking questions as well meaning contact your actual agent if you have one rather than a claims center because the actual insurance company could record things as a loss even if they aren't paying a claim.

I’m fairly new to real estate investing but the house I live in is paid for and I have a rental property that is paying for itself and paying me too.  

I had to pay to have the sidewalk leveled.

It was appraised 1 year ago at $160,000The tenant pays $600 per month (Mortgage/Escrow just went up to $525 per month)Bigger Pockets Rent Estimator says $1,100 (I'm thinking $1,200 after repairs)Zestimate: $192,1002 Beds 2 Baths1,700 Sq Ft2 car attached garageBonus unfinished space over the garage.

And you are using all of the proceeds from your sale as the down payment you will defer all tax.On the other hand - if you're wanting to sell your property and carry the note back as seller financing to the buyer you will either pay the tax on the note (but it will be an installment sale and so the tax will be spread out). 

Pay them no mind.

My question is if you buy the foreclosure then sell to someone else, can you pay off the mortgage even if it's technically still in the previous owners name?

You'll have to learn a new market, build a new support team and pay someone to manage all of that because it is so far away.