If it's more than $30,000, she will need to complete a simple tax form, but she will not owe taxes.Also, does your wife by chance have a single sister?

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).

We use one business card for simplicity and download the transactions and then reconcile them by Category (Office Supplies, Repairs & Maintenance, Property Mgmt, etc.), by Responsible Entity (which LLC, corp or whatever) and property if necessary.

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.