If you normally buy and hold and flip one or two per year cause that exit strategy makes more sense you'll probably be ok but if you're primarily flipping and doing multiple that will be deemed as running a business.   

Holding time was 12 months.

They had suggested using a trust to hold the asset and I like the idea! 

Most traditional resources, like books, are starting to seem obsolete considering they seem to use a model of low house prices, low interest rates and being able to keep raising rental rates.

Also it is usually more expensive than traditional financing so if you would qualify for traditional financing you might want to explore that option first.

(This is also with only looking at traditional loan options as we have no experience with private lending). 

In talking to her, I got a vibe that she is not well mentally.I am concerned about insuring the property for the duration of the eviction process,  specifically for liability because it seems like the laws put you in a catch 22 where you can't get on the property to maintain it yet they would hold you responsible for any dammages if they were to occur.How does one protect against this?

That is IRR.NOTE: IRR assumes reinvestments are at the same original rate so that can throw off projections, also short term assets can have large swings in IRR due to it takes into consideration time.Lastly where IRR is extremely helpful is when analyzing two deals.Such as should I buy and hold this asset for 3 years, 5 years or fix and flip it or comparison of two separate investments.

In short, unless you plan to do some significant rehab and hold it for another year, I doubt you could increase the valuation with the high revenue.

Investment Info:Single-family residence buy & hold investment in Cleveland.