Your reporting on your federal return shows whatever recognized gain is recognized. 

Let us know how you make out. any descent landlord should immediately recognize the hazard to their own property and help to fix.  

Which is a lesson learned for me because I need to plan things out and recognize issues faster.

Start with your primary, rent out any spare bedrooms "house hack"Use that to practice upgrades, kitchen, bathroom, curb appeal... etcNow you have experience as a landlord and flipper, use that to buy a distressed propertyAdd 40% equity to the property through home makeover, refinance into a low cost mortgageNow you are cashflowing a healthy margin on a second property, use that to build equity over time, cashout later and buy your duplex/quad.If it's going to take you 10 years to save up a down payment for a small apartment building, yeah it makes more sense to start growing your portfolio with cheap SFR flips instead.Every market is different, every borrower is different, every property is different, it would be ill-advised to recommend anything without recognizing the individual's nuanced goals and objectives with their next acquisition.

More conflict, less desire to recognize he value of my experience and resulting success  He started a rehab Dec 1 and left to Europe today.  

Recognize that going out of state will come with a lot of learning and education; there's a cost for that of your time and if its better served educating out of state or spending it on the property.

(I remember when my dad bought some books from Amazon.com in 1996 or 1997; he wasn’t a pioneer, but he was a fairly early adopter, and immediately recognized the consumer value that Amazon brought.) 

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.

This will usually lead you directly to low barrier stagnant markets where the cash flow represented in your spreadsheet does not transfer to reality and the most of the equity is "paper equity" because you will never see it materialize yet many look at completing the BRRRR as the ultimate success.I recognize I am using some assumptions but let's assume you have $100k to invest and purchase and renovate a home in MARKET A for $400K but once renovated the home is worth $500K.

Recognizing red flags early are key to staying profitable.