With property insurers’ profitability and trade combined ratios improving, we can expect some relief soon.

And would this be considered "capital gains" since it's re-sold under 1-year therefore having to pay a large % of tax on the profit?

Getting a base 8-15% return instead of 2-3% before actual “profit” puts you way ahead of the cash buyer. 

After months of reassemble and some customization work, the property sold for a decent profit.

Its all legal and now you only have to maintain a place for 5 groups. 1) you can get a heavy cash deposit down for the ownership. 2) they pay quarterly for expenses that funds the overhead. 3) everone has a share of profit when you or they decide to sell for a higher price.

There is only risk/profit exposure calculous.

Before taking out profits, make sure you have enough set aside for unexpected expenses like repairs, vacancies, or larger maintenance issues.

Quote from @Kody Smith: I am New-ish to Bigger Pockets, and would love to connect with the community here.The idea: move from single family homes into commercial real estate... specifically multi family.The Goal: generate $20k/mo in cash flowI'm currently in silicon valley (san jose)... would love to find something profitable here, but it looks like there are better opportunities elsewhere.I am open to investing in markets across the US.

And there are landlords who only care about maximizing profit and nothing else.

If you are consistent with these action items you will avoid most claims, your business will be more profitable,  operate more efficiently and if a claim were to arise you will have all your ducks in a row.