I would advise you begin to make connections there as well.Another thought on this project is, can you volunteer to be part of the rehab effort either for pay or free so that you can learn about what it takes to perform this kind of work and get a birds eye view of the standards this other investor operates by??

You'll just be taxed on the rent you received MINUS any allowable deductions (i.e. mortgage interest, property tax, operating expenses, depreciation, repairs, etc).

Looking forward to working in the industry as a Construction Manager to fund my marketing and to close dealsGoals: Flip 3-5 properties and Buy & Hold 3-5 properties every year in operation.

I don't want to be involved in day to day operations boots on the ground, so I need a larger community that can support staff, but again, I have plenty of friends who are milking the smaller community niche.

Lets break a flip down to its core elements, Cost and profit.Like you said, you need to live somewhere and if you are living in your flip, then the cost of you living doesnt figure into your investment. 

The value of commercial real estate is determined by your Net Operating Income and Cap Rate for the area, not comparables.We purchased a 37unit in 2009 with $150k down. 

Its good to hear feedback about how they operate in TX markets.

Under most office leases, you are going to be charged extra for all the operating expenses of the building, from taxes and insurance to security to cleaning the restrooms.If you need any work done in your office, you have to go through the building management and use their contractors.

I have a 'S' corp in another industry and despite me forming it RIGHT FROM THE BEGINNING, it had very little impact on my day to day operations and tax ramifications. 

Generating gross operating income $190,000 with $80,000 expenses leaving $110,000 after taxes and interest left with $60,000 profit in the pocket.The way I am structuring the deal is that If the investor puts up $300,000 they will have 85% ($50,000) of the profit and being that I will be doing the day to day managing of the deal 15%($10,000) per year.