When I was flipping, I took my profits and bought rental homes.

However your potential margins - with a brrrr/refi or a sale - are very large if the property is able to indeed be repaired.Good luck and keep us posted on your progress!

Purchase price: $330,000 Cash invested: $360,000 A cash (silent) partner and I are buying this duplex, flipping it to an ARV of $460,000 then doing a cash out refi or selling it for a profit.

The IRS taxes home sale profits based on ownership, not who receives the money.

Except you are not the builder  Having a house built by a builder , you are paying their profit .

.- The profits are then “passed through” to you and your partner.

I am willing to give up my profit in the deal to find a mentor.

I want to profit off the interest rate and perhaps offer 6% rate on what is left on the mortgage.

All those things, and more, need to be ironed out.Question 2From a tax perspective, if you put a dollar in a business and when you sell you get a dollar back, that is a $0 profit, so from that perspective there is no tax. 

My parents have finished paying off the mortgage on their home and are wondering weather it would be more profitable to sell their home or rent it out.