In some cases it could cost more than 20% to sell, meaning the net after a refi would be more than the net after a sale.Of course a IRC Section 1031 would alleviate the Federal tax, but state and local taxes as well as all the other costs of selling would remain.

I was wondering if say it was listed for 200 and I put 20% down the remaining about financed would be $160k.

Excerpt from:"America's mortgage-insurance giants are making bigger profits than before the crisis"From this month's Economist:  "The fact remains that both Fannie and Freddie have emerged from the financial crisis churning out more profits before tax than they ever have before (see chart).

Is there a way I can verify his remaining loan amount?

Consider this basic scenario and followup question:I want to purchase a property by borrowing 80% of the cost and have a partner/investor cover the remaining 20%. 

Ideally, a tax escrow payment has already been established on the account to help ensure taxes remain current going forward.Bob's approach will work if the borrower agrees to the large escrow payment. 

Without negotiating/satisfying the$300k in judgments, you won't be selling/flipping.

So you can still claim the $3000 under the routine maintenance safe harbor but you cannot elect SHST for that property, instead you need to classify every item of that remaining $4000 and test each item's effect on it's respective UOP. 

Remain in the area for minimum of 1 year.The other option is investing remotely as a newbie but I am not too comfortable with that considering I will need to put a lot of trust / faith in people I have little prior interaction with.If anyone has done anything similar or has any advice on my options / potential markets for me to look into for April 2015, please contact me or leave a post.Thanks!

@Daniel Sistofor me personally, I focus 85/90% on my primary investment objective and the remaining just reading through other posts to gain some knowledge.