Currently, I am looking for RE investment opportunity such as rental properties in major cities outside of CA. 

I'm planing on using the profit from flips for down payments on buy and hold rentals.

. $860/month Net monthly profit: $665Cash on Cash: 19.95%Any thoughts on this deal?

I got into this situation because we have never used outside funding, we have only used profit from our other properties to fund rehab, but due to round 3 with cancer we had to put it on the back burner for a short period of time.

Then, they either turn around and sell them at a profit, or make any needed repairs and rent them out.

I think I am starting to figure this out due to all the great help here on BP and some great books on SDIRAs too, but just want to make sure as we are some serious talks with a motivated seller about our next purchases.I understand the concept that when I use leverage in the form of a non-recourse loan in a SDIRA that their will be tax due on the percent of profits that are *related to that financing*.

If all went well, your investment would be recouped within a few months and the rest would be profit.  

I recently had a broker send me materials on a property that were at 50% occupancy because the need for major capex made half of the units unlivable.

They company can easily go to a bank- but if I can profit off it If you had a high degree of confidence the deal would close- to the question- what terms would excite you for a 2 month period?

That drastically reduces the deals that support that kind of financing.You could bring on a money partner who has the steady income but not time and is willing to sign on the line that is dotted (glenn gary ref there lol)  That could work but now you have to give up a big portion of the profits, which is also fine but you have to know that going into the deal and that there enough meat on the bone.