Most seasoned rehabbers establish a minimum expected profit margin per deal of $15k, in order to absorb the risk of all the potential issues that might arise in seeking to attain that profit.

Did he end up establishing an s-corp?

@Casey Randall Lenz maybe the older gentleman is fed up with the upkeep, ready to sell off and move to condo living. you could buy into an already established business and also rent the house.

A seperate Ira is established for each SFR to isolate the liability and most use the flat fee approach approx $275/year/account.  

Majority of the calendar year after you establish occupancy within 60 days of buying the home.

The amount of time required to establish a rental history is arbitrary.

yes, its called a sole proprietorship .. and you can deduct business expenses the same as you would a LLC .. most people start a LLC because their business grows and they might have a few employees or most people think that by starting a LLC it will orotect their personal assets but that is not true .. the best protection besides hiding them by establishing real estate trusts is forming a C-corp .. but i would suggest you hire a tax consultant before doing any of those things .. they should save you more than they should ever cost you .. good luck ...God Speed , 

If/when I get to an agreement on price I will have established my loss. 

First establish some rapport with them.  

Can I establish an LLC at this point even if it is my primary residence and I am the owner?