Always consult your own tax professional.Starting concept: net incomeBusiness are taxed on net income, not gross income.

I think that's the concept you're asking about.

transforming a room into master bedroom , utilize basement space to add sqft , fixtures , open space concept ( tare down drywalls to make open space - kitchen - living room - dining room

I always had a concept of what wholesaling was but never really knew exactly how it worked.

Is there any legal way to invest in this concept without being accredited as an investor per SEC rules?

Or, should i do the same exact concept except eliminate the holding company, and simply have 3 independent LLC's, all with me as the member, and the property management company handle all of the transactions and pay the property holding LLCs a fee each month? 

There is a concept in the law I believe called "undue enrichment" meaning that you benefited by something they did. 

But here's what I’ve learned: you'll never have all the answers, and waiting for complete certainty can hold you back.What has worked for me is the concept of a "70% solution."

You mentioned they have kids, so they probably used a diaper pale before which is more or less the same concept as putting tp in a trash can.

Even if the deal wasn’t smooth it was a proof of concept and I paid for my education.We are closing on our second deal on Monday, a good value add 6 unit a few blocks away.