You'll find it's a whole different game than your rental property in a high cost state.

I purchased a bunch of PSI exams and books, no issues obtaining an excellent grade (PSI wording, not mine). 

I like the idea of fix and flip for additional capital but I’m a rookie and not sure if it is too much of a risk for my first investment to be a flip.Aside from wanting to get in to San Diego, my priority is to get in the game and set myself up to be able to grow my portfolio.Any feedback or advice would be much appreciated!! 

Based on what you are looking to do, this might make sense.

“Yet” being the key word there.

Decide which game you want to play.

It sounds like if you just structured it giving him commissions it would not really work out considering he clearly wants more involvement/skin in the game on the project.Maybe just split it LLC 50/50 and the commission savings is a preferred return over his split on the exit?

There are so many caveats and unknowns here that this is just an attempt at an idea...Option 1, the four grandchildren living in the property buy out the other two:-Estimate your PITI payments based on the expected payout to the 2 grandchildren being bought out.

The mortgage payment is based on the interest rate and term. 

State income taxes are usually based on the gain or loss from each state, so you pay taxes on your gain in Illinois.