Flipping is a high risk activity, and the greatest way to mitigate that risk is through knowledge and experience.

The former is active business income, and the latter is not business income, and is also sheltered by the section 121 exclusion, assuming you meet the requirements.

@Kurt Defenbaugh you just need to buy some major value add apartment buildings.

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.

I am talking from experience having worked on multiple deals and having deep relationships with major brokers. 

I don't want to speak for @Chris Seveney or @Cody Cox but I believe they both learned a lot from @Scott Carson who is one of the major educators in the note space so I would strongly advise you look into what he has to offer.

I am an active investor in the area, and I'm hoping to form a relationship with someone interested in working with me repeatedly on numerous similar projects as they come up.Some things to note: I live in California, so must be willing to work with someone remote.

.- Entry price point compared to other talked about areas- Other wildcards like floods and crime activity 

Is there any tips on major red flags to look for? 

In general, you look at the MSA population growth, job market growth, major employers, major industries present, whether the infrastructure exists in the area, is supply lower or higher than the demand.