The 6 month seasoning would allow the cashout to recover all the invested capital by basing it on appraisal price. 

I am looking to get started wholesaling and build some capital to do some fix-n-flips in the next couple of months in Georgia. 

I also pointed out that her mom had owned the house for about 15 years and probably had a basis of about $135,000 and with the stepped up basis she could sell now with no capital gains but if she rented it for a couple of years she would lose that benefit.

I found a lender that will loan 75% of the purchase price, and I could make the deal work, but It would eat up most of my capital reserves.

@Etan Frankel although the government has a hard deadline of April 20th, 2018 to establish designated opportunity zones nation-wide, the investments wont happen for a short period afterwards while the IRS works on designating qualifications for the certification of an Opportunity Zone Fund.As soon as the certifications have been designated and the flood gates for applications are opened, i am sure you will begin to see many Opportunity Fund's pop up that would be eager to participate in the investment.

I know there may be a tax on the capital gain, anything else could become an issue?

Also talk to your CPA about capital expenses (especially before you make big purchases).

I'm ahead around 6x (pre-capital gains tax) on my initial investment in the form of equity (down payment and closing costs only), and tenant has paid a years worth of mortgage as well.

Rather than thinking of it as a return, it is good to think of it as the point at which the capital and space markets intersect. 

Is that cash out now capital gains?