Can take your time on the rehab, do some of it yourself, build your contractor network, get familiar with rehab work and costs, not have to live with roommates (house hack), get owner occupied financing, and get tax free gain on sale at the end of it. 

Therefore, I am interested in buying him out, but before I do I want to understand if it helps me or hurts me in my investment journey.I would be buying 60 acres for $260,000 and it would cost me $60,000 for the down payment and closing costs. 

Quick Turnaround: Whole-tailing allows for rapid transactions, minimizing holding costs.

I just purchased a SFH that we are rehabbing and will rent for a buy and hold.

Although AB-968 doesn’t specifically mention “licensed” contractors, the state of California already stipulates that “anyone who contracts to perform work that is valued at $500 or more in combined labor and materials costs must hold a current, valid license from CSLB” (source: CSLB).With AB-968, if work is performed by an (un)licensed contractor in an amount that exceeds $500, disclosing that entity’s or individual’s name and contact information becomes a legal requirement.

He sold me a home for $225,000 that he purchased for less than half of that and said he will be putting in $100,000 worth of rehab work and thats why he was charging me so much more. 

@Andrew GarrettI’ve been investing in NC for a while, the main issue with Raleigh is rents are low compared to costs of homes.

I also suggest that the tenant install a camera that stores videos of the driveway, then when tenant has proof, you can send notice to owner next door that he is to eliminate hazards he is creating, or you will sue for damages, especially if it costs you tenants, as they can’t afford and shouldn’t have to deal with repeated damage.

Was the owner doing his own repairs and hiding the costs?  

I’ve been rehabbing it myself since day 1.