After rehab, the ARV is projected at $320k, which could yield $55-65k in profit from a flip (after taxes), or a ~5% cash-on-cash ROI if we choose to BRRRR.

ARV high enough so the project cost is under 70%.That's a good, small beginners deal, IMO. 

First, how does everyone handle the capital gains on a rehab project?

Lenders will require that you have building experience, plans, permits, and a solid project.

You still have a young loan so  let the amortization run its course and set your regular income aside for the next opportunity/project that you want to explore.  

The mom and pop investors well we know they tend to run with social media and how some looks as we have seen with some of the SM stars that have their projects in trouble. to me this is just going to go to judgement then Chapter 7 .

You'll develop tough skin and it will make other seller calls (i.e.

From there that will determine your down payment relative to your total cost of the project. 

Yes, you aren't taking advantage of the better financing options available for homeowners, but that's only one of many things to take into account when investing in real estate.California is also a really tough state to invest in; high prices, unfriendly to landlords, etc.

If you bought in 2018 and sold in 2022, you probably made out like a bandit.Waco seems to have been pretty tough place to make money the past couple of years, so hopefully you were in that group.