There is a thread here "Profits in Non-Profits".If you'll better describe what you have in mind, besides "educational" matters, it will help.Any business structure like an LLC will have the requirement for the intent of profit to remain in good standing, not that you need to make big bucks, but you don't want just a shell without activity either. :)

My question is do you pay capital gain on a profit that you have all intentions of reinvesting back to your business?

Generally speaking, they are instruments purposely designed to strip equity from the buyer/vendee/borrower whether intentional or not.

If i chose to use the funds ill just take the 40% hit and do what i want with the money, if i was to go that route.I think it would be much more useful to maintain the 401k while flipping houses, then i can dump 16,500 a year into it from the profits so i can keep my tax bracket low.

Ill take the one month hit in the beginning by waiting to find the right tenant.

Ill definitely have to look into the CCIM courses perhaps later down the line.

If you're relying on insurance, be sure that it covers intentional acts include Fraud, violations of the Deceptive Trade Practices Act (in Texas), etc.

Guess what, as a result I have the best tenants in town.As far as protection from intentional and gross negligent acts. 

my credit was fine until the beginning of this year. i made an ill timed/planned move and have had a hard time digging myself out of the hole.

I am very new to the area of intentional real estate investing.