Cons: - I think property tax rates are kind of high.

There really isn't cash flow anywhere right now without some kind of niche or angle.If you buy a miscellaneous, "lower cost" house around the median in PA or OH, and put conventional or DSCR debt on it... it's not going to cash flow.And you really need to be hands-on somehow, whether that's literally your own or a trusted team. 

Here’s a summary based on the responses:Tax Rates and Holding Period:For flips (properties bought, rehabbed, and sold quickly), profits are taxed as ordinary income, not capital gains.The holding period is calculated from the purchase date to the sale date.1031 Exchange:1031 exchanges apply only to properties held for investment, not quick flips.If intending to use a 1031 exchange, I must reinvest the proceeds into a like-kind property within 180 days.Holding a property for less than a year may disqualify it from 1031 eligibility due to lack of demonstrated investment intent.Thanks again for all the helpful advice!

I want to know what kind of loan I should go for assuming everything is check out.

Get a few of those and read them - that way you can start to get familiar with what kinds of things can happen in a house, and how big of a deal it is to fix each one of them.If there are any new houses being built in your area (like, within bike or bus/train range), and the neighborhood is relatively OK, go over to that neighborhood, after the workers have left for the day, and see what building a house looks like. 

Someone mentioned "buy the real estate, not the tenant" and that is true to an extent, but you also need to know what kind of rent that real estate will garner down the road. 

That seems like the route I’m kind of aiming for as well honestly!

I understand they are using a promissory note, But have you thought about getting some kind of legal opinion before getting involved with that option.

I can shoot you templates on this kind of outreach and how to structure your agreement with them if you're a first timer at this sort of partnership. 

I've met many sharks here on BP that I was looking for a specific kind of loan program that is outside the box and I was looking for someone to fill it and I was quoted 3 points - 4 points.