I plan to by 1 property in year 1, 2 in year 2, 3 in year 3, and so on with a final goal of 10 properties paid in full all generating passive cash flow.

The other advantage to the buyer is that now in the property history it shows that they bought it at a higher price, which makes it look like they are getting less profit when they sell it later.

Scott will tell you that you have to build in your profit . 

Investment Info:

Single-family residence fix & flip investment in Jeffersonville.

Purchase price: $70,000

Cash invested: $90,000

This property was the biggest transformation so far in my REI care...

I do currently have 50k in home equity which I plan to use for down payments and some repairs on my first propertyMy question is, is it profitable to purchase commercial real estate to be used as a rental property in smaller towns?

As in - let's figure out how much interest you can deduct, and let's get a loan that generates this exact amount of interest, regardless of the size of the loan and its interest rate.If this is what he had in mind, I consider such approach very counter-productive.The starting point in this discussion should be leverage.

A business partner recommended splitting rehab costs with owner and splitting the profits.

 @Mark Stephens Networking + lead generation + Studying 

Research and define your geographic marketplace, your marketing plan and budget for generating leads, your sources of capital for both operating expenses and funding deals. 

If I flip it today I can profit 182K.