This is not specifically defined in the tax code, however.

Your state statutes will define how security deposits are held.

It is worth about 170,000 and define good lenders lol!

Seems you need to define the location, budget, return and comfort level of rehab.

That first deal is definitely intimidating...I think one of the keys for us was defining our locations (then properties are much easier to analyze) and working with a real estate broker that had a ton of experience in investing. 

Driving for dollars and direct mail marketing to a very select and defined criteria of homeowner.

Self-employment activity is defined in IRS Publication 560 (the publication for self-employed plans including SEPs and solo 401k plans), and the self-employment activity can be performed on a part or full-time basis. https://www.irs.gov/publications/p560

If it's in Castro Valley, be advised that CV is not a city of any sort;  it's just a "Census Defined Place", and a part of the Alameda County unincorporated areas.If it isn't in Hayward, make sure the escrow company doesn't charge you the City of Hayward transfer tax. 

I just think there are too many moving parts that should be defined first. 

I am absorbing information and trying to get as connected as possible, I’ll definately keep everyone posted.