She had the capital to fall back on in case things went sideways.Anyways, no need to respond.

JonSo if I am a full time investor that flips for a living what would my tax percentage fall under for Capitol Gains?

In light of these circumstances, I'm seeking advice on the best financing options to address this costly project if insurance coverage falls short.

Once this falls of the cliff, you are better of with buying a REIT at the stock exchange and have real passive income.

I try to be cordial and brief, but his issues have become increasingly bothersome.He now believes he is the victim of a serious crime, often calling to tell me the police are coming over (which they never do), or asking if I see a specific car on the street because he fears they are there to harm him.

The reason I say that is because from the wording in your post, your still fairly early on in the process and may be susceptible to falling for the "next best thing" pitch that you'll find all too common both in BP as well as out of the forums. 

Yes, we did.Here is why: market was a falling knife, loss next month will be worse, subject property not properly insured, and pants on fire "person supposed to pay borrower" is going to cut corners and try other tricks.

I've been consulting some of the most respected and world-renowned financial advisors over the past few days and the Infinite Banking concept is a joke in these circles and is referred to as a scheme, money-grab, and something that is used to abuse the trust of those that fall for it.I would love nothing more than to be proven wrong and learn a new strategy to help my clients. 

Philly can be a good market to get into because of the low barrier to entry price wise - but you can fall hard if you buy wrong...

The best way to save on taxes and increase net worth would be to keep buying or when rates fall possibly 1031 up to larger properties with more doors.