Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

The question I'm up against is what private money is going for these days for a build with this much room for upside.

If the applicant comes from the pool of people that I or my tenants know, I use real estate as a way to give back as many of my tenants will not qualify credit wise or may even have a criminal background or would struggle for another reason if I were to just stick to the "background/credit check" criteria. 

On a rental that’s not generating income is it any different book keeping wise then you would for a rental that’s is making money Or what are good things to know or learn Thank you !

That's where good people live, and good people make good tenants.But before you put money down on a house, I would find a quality property manager.

That is how I have structured it so that I don’t have a ton of my own money into the deals.

Quote from @Chris Mason: Quote from @James Wise: Quote from @Jay Hinrichs: Quote from @Chris Mason: Indoor shopping malls as they existed in the 1990s are dying, but retail is not.

The PM has also not sent them the rent money from the past 3 months.

I know that anything in California price-wise is far above many parts of the country. 

So you better find something that cash flows or you’d be better off putting the money in a bank CD.