.), for which you should consult a knowledgeable CPA, but those revolve around shifting areas of taxation and deriving additional benefits.You'll want to do your flipping in an LLC (and if you plan on doing multiples, you should look into Series-LLC) for liability purposes (,  so that if a buyer of one of your flips comes back years after the sale with a lawsuit, you are protected).One way or another, the money gained from flipping is active income and you'll have to pay taxes for it.

Some thoughts:-You make a lot of assumptions about how accredited investors got their money, particularly the false equivalence of wealth being derived solely from business acumen/knowledge.

That being said, with multifamily properties (at least with those over a couple units), the value is derived from the cap rate (net income / Price) as how that compares to similar multifamily properties nearby.

@Joe Splitrock Jobs do drive growth, but to only look at one factor and derive causality from it misses or ignores lots of other things happening in an enormously complex and interrelated system. 

Commercial real estate is partially about the property value, but mostly the value is derived from potential cash flow.Start with a market rent survey.

Of course, if the two numbers are close to their asking price, you don’t have to delve into how you derived your number.

I own hundreds of properties & still do not derive the majority of my income from them.

That's why most experienced flippers use projected profit and expense numbers, not percentages.The 70% rule is nothing more than a quick and dirty way of screening potential deals, and was derived from an average over a large number of flips with a large variance of price points. 

Ask for the trailing 12months P&L, and you can derive NOI from there  (Net income-operating expenses).  

Management fee is an operating expense and subtracted from gross income to derive NOI.Gino