This will help me determine what I will offer on the property.Some details, if they help:I will use the FHA loan for this.(3) 1-bed 1-bath units rented at 425 a month, 1 is vacant (for me).

Having given this idea some thought, you have not provided enjoying information for me to make a sound decision.For what it’s worth, you may have equity today, but it may be non-existent tomorrow.  

Thanks all for the advices.About why flip instead of hold, my realtor reasoning is that the pool adds to the liability when renting, and needs to be maintained properly, that's an extra cost, and given the rental rates in the area and the potential resale value, it seems like renting wouldn't provide much so much cashflow to make sense, it would barely break even or even have negative cashflow.My wife is of the same opinion, while for me renting even if it doesn't provide that much cashflow, makes more sense due the extra taxes when flipping.

And bring on partners or form partnerships with people who are like minded and have the experience and leverage you and your firm will need to do business. 

However, I was told that banks would either not approve a loan to a newly formed LLC or that the rates would be much higher.

This will allow you to get up to 35% back of the interest you pay in the form of a federal credit on  your income taxes.

I work with a Hard Money Lender who will bring cash to the auctions and buy the properties for me.

Is it better to speak to a CPA in the state where the trust was formed or in the state where the majority of the properties are held.

You spend your profits ONLY...and use(invest) your seed money to infinity...and beyond.hi Joe - i do not own any properties at this time, and flipping isn't for me (maybe for now, maybe i'll explore this in the future).what you said you wouldn't do is exactly what i would do; i need to start building a portfolio of rentals so i'd like to invest in one or two condos in the area at this time. my seed money would be my start up money. i'm not sure how to make a profit without it (spend money to make money concept here?)

You'll need a solid educational foundation before you start.In the meantime, either get involved in real estate or business in some form.