There are numerous numbers you can look at but it really depends on what your investing goals are for. 

I'm going to call my tax advisor tomorrow and ask them but I'm not confident in their explanation so I'm looking for another opinion.Thanks in advance and I appreciate the help.

The answer is yes, and an explanation is here: https://www.biggerpockets.com/forums/51-tax-legal-issues-con... 

Why didn't you write the PSA using gift funds or, submit a letter of explanation for why?  

In fact, numerous Tax Court cases have found in favor of the IRS when a taxpayer can’t document enough hours spent providing personal services to their rental real estate activities.Generally, material participation is determined separately for each rental property.

Sometimes it's ambiguous, but even then, why should I bother with the company that has numerous unresolved lawsuits, versus another company that is virtually the same but has none.

Hi Karolis,Thank you so much for your detailed explanation.

I did my first flip in 2002 and have done numerous since.

Nicholas, thank you for explanation about clearing my expectations for A and B neighborhoods!

@Wayne Brooks your explanation is what I would expect but I keep reading on various lawyer web sites that the transfer tax is 7% of the current mortgage which for a 150k mortgage is 10,500, which is just nutz!