@Allan SmithI know friends that keep the sliding door open to cool the patio.

How long do I have to own a property before I sell it and the proceeds are subject to capital gains taxes vs. ordinary income?

I know in a typical syndication, we'll be talking of finders fee, asset mgt fee etc. but in the scenario that I shared above, would a 50/50 split be out of the ordinary?

Lots of variables, but if I had to reduce it to one metric, I would use:  Minimum profit of 15% of ARV.So, on a house that we believe will resell for $400,000, we'd be looking for a minimum profit of $60,000.That said, here are a few additional thoughts:-  Obviously, not all rehabs require the same amount of time and risk, so if we run into something that is out of the ordinary for either (much quicker/longer or much lower/higher risk), we will adjust that requirement.-  These days, good deals are hard to find. 

The Pex pipe runs above an outside patio roof that was not repaired correctly nor insulated.

You’ll pay ordinary income tax, along with 15.3% self employment tax....and it doesn’t matter what you do with the money afterward.

The lawn was dead, so we are doing a native Ca plant yard, with fence to set off a little patio area in front... 

Anything out of the ordinary?

And lastly, you show pictures of the back yard and mention it's available for their use, but you don't have any photos of patio furniture, a BBQ or anything else.

In Philadelphia, in the neighbourhood we operate in, a new construction single family home (or a three-storey home with a rooftop patio) costs just over $350K to build with a resale of price of $455K, an initial invested capital of about $80K and a 10-year tax abatement.