I think paying off a loan with a high interest rate debt and adding to the principal is one way to stay liquid within the property. 

For the flip itself, this would mean a GC or better yet, have a crew there that can handle 60-70% of all the work meaning they are there working on it the day you close and stay there throughout the process till it's completed. 

Hello,We are being approached to GC/partner on a spec home with whom the client owns the lot and will be securing the construction financing himself in order to do the deal.

Yes, you can create an LLC and deed the property from your name into the LLC.

I don't know the answer.

The absolute #1 question is:Do you own investment properties?

As of right now, the estimated pay out per claim is about $8.

I guess the first question is why? 

To qualify, taxpayers must meet specific criteria demonstrating that they are real estate professionals who materially participate in their rental activities.How to Navigate the Rules:Step 1: Identify your real property trades or businessesHere is a list of activities that are considered to be a real property trade or business:RedevelopmentLeasingConversionConstructionReal property developmentReconstructionOperationRentalBrokerageManagementAcquisitionIf you participate in multiple of these activities, you may be able to combine them making it easier to meet the material participation hour requirements.Step 2: Demonstrate material participation in real property trades or businessesThere are seven tests to determine if you demonstrate material participation.

The IRS is the other way around.Your bonus depreciation, assuming you're eligible for it, is not pro-rated.