Even the modest 4% annual appreciation equals wealth gains far above any monthly cash I can make on a rental.

Having been in the lending space for a while now,  Interest income is not passive - its considered/taxed as ordinary income- just like interest you receive from your bank and savings account.Regarding profit and expenses from a flip, "that depends" on many factors but again if its short term capital gains, its not tax friendly.As always consult with your tax advisor / CPA. 

YUP I have bought a number of houses at court house steps were the owner said it will never go to sale as I have a buyer.. well buyer is wholesaler who has no money and they cant flip the contract and the poor owner loses their house no time to even file a BK and regroup.. wholesaling is a very sleazy business the way MOST folks do it.. thats why its starting to get attention from the states..

The overall gain on the sale of the original property was over $500K, and I received $500K in cash.

I'm just wondering how to handle the capital gain tax between me and my partner.

Short term capital gains for our bracket would be 20%.

Second step is to post the notice - this often gets their attention and prompts communication as we tape it on their front door.

Would love to buy you a coffee or anything to gain some first hand experience from you if you have time!

This gives you more flexibility while building equity and gaining experience.Risk Spread: More units mean a lower risk of vacancy impacting your overall revenue.

Am I subject to any tax or capital gains tax on that 100k?