I also looked at syndications with bonus depreciation to negate cap gains, but I would still have to pay 10% CA tax and you cannot bonus depreciate forever.   

My plan is to see if he will let ME reno the house, HE sells it, and then he pockets the before work value (plus a 10-15% bonus) and I get my renovation costs back and the profit. 

Main Floor: 3 Bed + 1 bonus room in basement + 2 Bathroom + KitchenBasement: 2 Bed + 1 Bathroom + KitchenWould like guidance, should proceed for deal ?

Sometimes you can get "extra" tax benefits like bonus depreciation on funds, if it is even a variable that matters to you. .

Bonus to this is that you will not see the cards on you credit profile because they are in the name of the LLC, so it doesn't affect your DTI or credit score besides the initial credit check.Otherwise, if it is a good enough deal, you may be able to find a private money investor that wants a strong yield and is willing to lend you the money with a second position lien on the property.

IF a property has been purchased a couple of years ago, and a regular depreciation was taken for 1 yeaer, ( ie. 27.5 year depreciation), in year 2, can you do a cost segragation, and take the bonus depreciation in the 2nd year?

Can deduct all of the furniture with bonus depreciation in either option?

Bonus if you can house hack, but it's not necessary.

So…If you sell, all that cost seg and bonus depreciation is going to be recaptured, at up to a 25% tax rate, instead of a 15% capital gains rate.You also have to take in to account if you think you’ll be making more money in the future (putting you in a higher tax bracket where these deductions would have done you more good.) or you think the government might decide they need more money and raise taxes. 

Added bonus would be someone who doesn't charge an arm and a leg.