I think it depends heavily on your seller's situation.Cash offer to a seller not in a hurry with financing contingent offers in play? 

I'm looking to invest with my friend/colleague who does not have too much cash, but is a tremendous worker, dependable, and previously a contractor; he would bring lots of value in turning the property around and wants to live in the home while we fix it up and thereafter (for at least a year maybe two).

@Delmas EdwardsThat really depends on your market.

So you should cast a slightly wider net when looking at employment opportunities around a given property as your rental demand may actually be coming from slightly further afield depending on the specific geography of your market.When it comes to flipping, you're probably looking to sell to an owner-occupant rather than another investor, which means certain things become even more important.

If I have to go back its going to be put on my schedule this week, not sure when yet, depends on the tenants.

It depends.

The 2 states have very different markets so it all depends on what investment will you be comfortable in.

It just depends what your goals are.

I'd also look into a Roth conversion, take the tax hit now and depending on your future outlook have the tax taken care of.

@Michael Dunn you should also note that depending on where your property is, you may pay City and County taxes.