Find a deal, run all the numbers with correct expense information, if the numbers work out for you and there you're heading towards a right path. 

@Maureen Nixon What @Joshua Birk said is correct.

Also, I might not have understood it correctly but the $40,000 in siding, to me is a sunk cost.

From the sound of it success isn't guaranteed but if a recording studio can be soundproof then there has to be a way to do it correctly. 

Brian, if I am understanding your correctly, then there is a good chance that I could engage in this transaction and not be subject to UBTI, as long as it didn't became the long term intent of the IRA (i.e. multiple future flip deals). 

Don't do the 1031 , they are correct if your intent was to flip it then it isn't qualified for the 1031.   

A kitchen and or bathroom remodel is going to be much more expensive than a bedroom remodel.Using a Cost per SF can be a handy quick rule of thumb for estimating rehab costs, but only if you understand the Scope of Work, repairs, materials, level of finishes, etc that are included.Shawn does very high-end luxury rehabs in Los Angeles (correct me if I'm wrong), so his $ per SF values are substantially higher than what I am paying for my average grade rehabs here in suburban KC. 

I have attached a report of a property near us using the BRRRR calc and it seems like a pretty great deal, but I am not certain that I am using the calculator correctly.

When someone asks if the we take Section 8 the correct answer is that we "take in to account all sources of income however the unit has not been inspected to be included with the Section 8 program". 

In California you must buy smart and be sure of your entrance and exit strategies, but if done correctly, California real estate will make you very wealthy.