I would purchase subsequent properties to gain economies of scale but would remain in the business and do other commercial RE part time.  

I've had several of my clients subsequently sell those properties and ask me for a report that states that the water loss was mitigated properly. 

In my town, Florham Park, NJ, there has been A LOT of tear downs of split level 1,500-2,500 square feet single family homes mostly on 1/2 to 1 acre lots and subsequent re-construction into large mansions.

I lost 5k on my first flip that I did by myself; but I learned a lot from that experience which helped me on my subsequent flips.  

Basic facts are that property purchaser bought a condominium unit that subsequently fell into litigation over the validity of an old deed of trust on the unit.

Odds are they would start to pad the 2017 budget (or worse, increases expenses in the near-term to justify a higher budget in subsequent years) so they could hit their goals.2.

But If I'm paying 10% apr then it is $10,000 for a year use of the money. if it is just the time used then it is $833 per month( 10,000/ 12 mns.) unless of course it is compounded monthly, then the amount would be a little more each subsequent month. can anyone explain how a typical hard money loan works?

That's generally an optional coverage, and if you don't have that coverage included on your policy, then the insurance company would not owe it, and subsequently would not pay for that. 

If you sell the property in 2024, the remaining "what would have been depreciated" over the subsequent years is subject to depreciation recapture.Here's a simplified calculation:Total Depreciation Taken: Let's say you've taken $1,000 in depreciation each year from 2020 to 2023, totaling $4,000.Remaining Depreciation to Be Recaptured: The remaining depreciation that would have been taken over the years 2024 and beyond (up to the end of the useful life, which is 27.5 years in total) would be $7,000 - $4,000 = $3,000.When you sell the property in 2024, the $3,000 remaining depreciation would be subject to depreciation recapture.

@Ivan Ng Transferring investment properties into an LLC and subsequently placing them into a revocable trust for estate planning purposes is a strategy that some individuals choose to pursue.