They are even more suspicious of borrowers who won't make a reasonable investment in a property, as that borrower has little incentive to try and preserve the property at all costs.This is the reality, and there is no circumvention of it.

Then I make two payments, one to buy the house (at a price less than what I can sell mine for, thus preserving my Prop 60 advantage) and a second payment to cover the rehab and profit of the flipper.Does this seem like a workable idea or is it flawed.

This does not include any repair costs for the real property or property preservation costs such as force placed insurance and tax advances.

They still use leverage as it preserves their cash and ask the seller to hold back a second.

They won't allow you to option their homes thus preserving some of your working capital like you could do with a private seller.

Their interest would be more in capital preservation and green cards, namely the EB-5 program (google it), that will give temporary to permanent legal status for foreign investors that pony-up 500k to 1mil a pop to invest in any US-based projects.

Depreciation and deductions disappear, but the ability to push out recognition of profits for decades (or forever in a Roth) makes growth easier.Successful retirement investing is about 1> preservation of capital, and 2> finding an acceptable return.

Clearly big builders squeeze their labor and their materials providers to preserve the bottom line, I think more than small-time contractors do.

You probably want to ask the attorney or title company about separate property, and the appropriate language to use to designate or preserve that status.Also note that you might be required to prove the use of separate funds for other expenses other than purchase price.

Before buying, contact your local Neighborhood Preservation Association.