Hey all,I have an interesting situation that I will need to deal with next year. My father is a year from retirement and has decided to withdraw his 401k to help me buy some additional investment properties. The deal ...

So you pay federal and state income tax as well as self employment tax on that income.

I'm curious if people do cash out re fi to their max LTV and then sell there place to avoid capital gains tax as much as possible and only pay on what's left over.

Not educated on your market but I would assume if your looking to grow your portfolio having roughly $ 155k ( after you pay 20K LT Tax ) a great jumpstart no matter where the market.

I was reading the VT state tax laws and while the language somewhat confuses me it looks like I'm subject to their state income tax as well as the federal cap gains for my tax bracket.

If the private lender participates in part of the profit, are they subject to higher taxes (such as personal income tax) as opposed to lending at a set interest rate?

We renewed this three different times and used it to save a great deal in state income tax as well as other fees.

Sold home(2) that I inherited, I'm in Texas, i don't qualify for capital gains tax as I already have a primary home(1).

Again, this is specific to me in Ohio and won't apply to you 100%.That said, most investors have LLCs and either tax as LLC or S-Corp. 

I've done the same in Virginia and there were no transfer tax as it was considered a "gift" to the LLC.Thank you,Tarik Nabi