For example, if the usual hard money structure is 90% of acquisition and 100% of rehab so long as the total loan amount is less than 70% of ARV, then I would expect, due to lack of experience, that you'd be looking at 85% of acquisition (as opposed to 90%). 

I'm trying to structure a California LLC as the non-cash partner.

What is the best way to structure the contract with the seller so that I can secure funding for the Rehab with my LLC?

If you want to invest in notes, that is very different and you can learn the business and try and buy on your own but for most it is more profitable to invest in a fund or other structure where you are not as active in the day to day business. 

So I'm guessing my bigger question would be how to go about structuring the deal?

From my understanding is that the deal is structured between buyer/seller with an agreement that the seller keeps the loan under his name, the buyer takes over the payments with any additional down payments.

Ideas on should we structure the deal?  

So a move from structure to raw land is fine as long as you're intending to hold that land for productive use. 

The income will most likely be taxed as ordinary income at your marginal tax rate, plus you're likely to be on the hook for self-employment tax for some/all of the income as well, depending on how you've structured the LLC.Long story short, flipping is *not* a good way to shelter taxes.

Looking for something in the 200,000-300,000 range, that needs work but no structural issues.