@Michael Nieves I would find a more profitable SFH or MFH and then when you leave rent it out.

Profit $30,000 on $150,000 Total project The report shows " Total Personal Cash Invested " However since I am borrowing the money , my cash invested is only approx 25% of Total Cash In , plus of course holding costs , etc..

Lending and flipping (if you profit) will give you additional ordinary and interest income to report.

Profits moving forward are split 50/50 in perpetuity.4.

I do not need to make a big profit but do not really want to go through the hassle to lose money.Thoughts?

@Surendra Chawla No I have not, but I have lived in Chandler many years ago ('00-'07) and have owned a SFH there (5 mins to Intel at Ray/Rural) which yielded a nice profit back in the day.

In 5 years, the novice investor will have paid us $39k (a small profit for us) and will then own the home.

Problem is banks do not like tip income and also I have many expenses for the business so it doesn't show much profit, even though many of these assets (truck, commercial mower, etc) will be paid off over the next 1-3 years.

Somehow I had never heard of this before and kind of stumbled on the info while talking to my lender how some of the flips I'm doing (thank god I did too).The flip rule prevents flippers from selling their projects for a profit for the first 90 days, beginning from the day the deed is recorded.  

Sell for under market value where you still profit.