I have 3 joint venture deals that were presented to me as netting 170% profits in 2 years. 

This is essential to running these profitably. 

Take your flip profits in CA, and buy with those profits for CF in the Midwest. 

There's nothing honorable about making a smaller profit.

On your tax return you would report the proceeds, subtract costs and proceeds paid to seller, then the remaining profit would be your flat fee.

When you go to sell, you're subject to tax on the amount of profit between your adjusted basis and sale price, not your purchase vs sale price.Recapture is not repaying the depreciation.

. $3000 profit, minus about $2300 in mortgage, property taxes and insurance leaves about $700 cashflow, when I move out.

- The property is probably NOT as profitable as you think it is.More reality for you - how are you going to cashflow enough from leveraged rentals to replace your current income?

At over 4000 sq ft, I'm surprised you won't be able to list for a much higher number to net a decent profit, but without knowing more specifics on the house and location, I am speculating here. 

Maybe that is gross profit when you sell it, but what about the cost to build it?