With 400K my initial thought is doing a BRRR/Flip that is close enough for you to be hands on.

I usually only have about 2k for closing costs out of pocket.

Since the previous owner is getting most of the proceeds does the closing attorney issue him a 1099S and then issue my company one for a much lower amount?

How do they treat people that are close to them?

It is still a seller's market in many geographic locations, so you can ask potential buyers for an extended closing period and/or with options to extend the closing period. 

A debt service loan would be a good option if your DTI is high, you want to close in an LLC, you're self-employed or have low income on paper, or you don't have a stable 2-year work history.

They give no official closing documents, just internal documents that I'm guessing are fraudulent. 170% profit in two years is a HUGE red flag🤯 

As soon as I close on it (next week), I'll list it on Zillow as well.I spoke to a lot of unqualified candidates, but I also spoke to some good ones, and I'd like for them to fill out an application.

Be prepared to come in with additional cash to close due the the appraisal.   

Quote from @Duarte Marques: Hey BP community, I'm new to real estate investing and have been studying (reading books, watching webinars, constructing excel cash flow models,...) close to a year.