This all comes down to how you're structured, how the flip cost were accounted for, if there is a partner (you mentioned "we").If it is an S Corporation and you "distribute" or "sell" the property to yourself, if there is any loss on value, which probably there isn't, know it most likely won't be deductible if it's a related party transaction.  

To date my annualized return has been north of 30%, so you can do quite well.  

(Meanwhile I had to pay a "rent" that went into an account for major repairs) Me wanting a nice house to raise my children put a LOT of my own money in for cosmetic repairs and the house is now worth more than double the original purchase price. $219k - now $500k market price in very southern Maine/NH border.

This seems to be a result of some smart accounting moves on my part, thanks to an investor-savvy accountant.

Purchase price, make ready cost and expected annual gross revenue?

., I definitely agree with the accounting piece, what are you thought on the legalities side of this.

When I go to Tools/Pro Partners/Home Depot and click on "Activate Perks" it has me sign in to my Home Depot account.

Our model is basically 2 people to a room, each individual pays $175 a week, each house has a manager (who lives free of charge)that handles intakes, discharges, accountability, checking chores and collecting the rent.

On the $620,000 underlying note we were earning $37,000 annual income.2.

We do get a better fee/split structure, and that's a fair trade for the extra work of managing a large investor base and it's associated extra accounting and tax reporting overhead.I also find the advice in the OP to be contradictory.