Flips are exciting, you learn a lot, more risk, more upside, more headaches, more short term taxable income. 

I think once you do it full time as your primary source of income, then it probably would be advisable to upgrade and get some software. 

I have no savings, and our debt to income isn't great right now, but we are making progress.

For me it's worth it, because REI is just one avenue of my family's income.

Once you have that rolling and you understand the game you can then invest your W2 income into additional properties. 

I chose to put 10% of the gross rent in there. 

It has my deferred gain amount as "Gross sales price less expenses of sale" for some reason.

They want to buy the home from me but are running into issues with debt to income ratio, so not eligible for FHA. 

I do not want spend my W2 income to cover house mortgages, to not have pressure if things like layoffs will happen, so my plan is to buy house in a good neighborhood that may have appreciation and some minimal cash flow after all expenses (management, maintenance and vacation).

Will this area see a huge increase in value and rental income?