You are essentially gambling with an ARM and that is not something you want to do.  

Otherwise, unless you know the area well, I'd say it's more of a gamble.

Although it's 30k under the list price, eventually someone might say yes.Are you saying that the average deal in California is either: 1) diamond in the rough, acquired by hard networking or luck, 2) requires appreciation to get a decent ROI (gambling?)

As a member of an LLC making a profit, your friend will have a duty to report and pay taxes on the profit and must have an ITIN (the equivalent of a social security number) in order to do so.The LLC will also need to withhold 25% of the profits before remitting them offshore, which your friend would then report as a payment on his behalf when filing his tax return.I just helped an Australian national set up this exact same situation and am working to set up a system for Chinese nationals to do the same.  

After listening to more bp I realize i am more gambling then running a business.

How is income derived from offshore (non-US) agricultural real estate investments (like a turnkey coffee farm) taxed?

too late to hide assets they can claw back ... it will be obvious.. just sell them move to cash take the cash and jump on a plane to the islands open an off shore account.. ( make sure you pay UR IRS tax's ) that should work..

Best case you may only be able to gamble on appreciation.

Also, travel, hospitality, and gambling will be hit hard for the immediate future4.

We also need sports gambling...