Chris, You should consult an individual tax advisor (and I am not providing any advice here, just providing general information that may or may not apply to your situation), but in most cases if she were a member she would have self-employment income from any active income derived from the business.  

in my experience there is almost always a way out of a contract, have you consulted a real estate attorney?

My real estate experience started right at the beginning of the recession when I interned at a PE Real Estate fund and then transitioned to a real estate valuation consulting group at a Big 4 accounting firm.

He might agree to consult in helping us estimate the work that will need to be done prior to purchase so we can determine if it is going to be a good property for us.I plan splitting the rent/proceeds w/my son, plus he'll get the realtor commission  [i figure yes, as I would pay it to someone else if he weren't one - but I wonder if there are other thoughts on that]As for my consultant friend, do I pay him a flat fee [if yes, how much is fair?]

You @Luigi Gutierrez need to consult a real estate attorney on this.

It's not your talent to sell stuff or your good looks or your ability to talk some talk someone out of their equity or money, get a Phd. in Real estate and a license to consult and you can charge 20K on a 2M dollar deal, not a 45K house.

You could hire a consultant for this one job, and after this flip you will be able to do these rehabs yourself.The truth is revealed by getting three bids for each subtrade.With a rehab, it's all about curb appeal and location.

Currently I am a consultant in the oil field and my sites keep me near the Texas and New Mexico state line.

You should consult an attorney or title agent if you have questions or doubts about the conveyance of your deed.Hope that helps!

One word of caution-- they will sign you up for a "free consultation" with one of the team members to help you with any questions.