If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

I recommend you do this annually to adjust for utility increases and other variables.

The original six month tenant I had extended the lease 9 times and stayed a total of 5 years, paying me about $15k over market rent annually.  

Historically, we net roughly 65K Californians annually. 

I am biased but I see property insurance going up higher and higher annually from today's rates.

With 5X leverage, a 4% long term appreciation becomes a 20% annual returns.

Of these professional wholesalers, nearly all of them will be well capitalized professional real estate investors or large businesses doing hundreds of deals annually with many years in and around every part of the real estate investment journey.

You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.

Through the years he enjoyed positive cash flow with the last ten years cash flowing at about $17,500 annually.  

Quote from @Elizabeth King: I have a property in my personal name that I plan to rent annually.