They are ordinary income and you've likely got a bit of a struggle on your hands to work this through.You can absolutely set up retirement plans based on your flipping income, even if you're flipping with partners, but you're in a situation where you're trying to have your cake and eat it too.If you are really going to insist that your flipping is capital gains (it's not, but let's say it is), then no - no retirement contributions because retirement contributions are based on EARNED income and capital gains is PASSIVE/INVESTMENT income. 

@Lydell StaplesThere's no regulations that prevent it, but I doubt there will be many investors willing to hand over their money to a convicted felon.The world is a cruel place.

On the other hand if you like to make the decisions, then borrow the money and do it on your own.

We then used that as part of the down payment along with 40K 'cash on hand' in our accounts on a 250K fourplex that we bought.

I want to do this locally as I have been a long distance landlord when I moved to Florida and prefer to be more hands on.

Any one has first hand experience?

Many take a HELOC to reduce the amount of funds on hand.

I'm looking for a Internship where I can learn and do hands-on in the office or field for 15-30 hours a week.

It used to be just the tri county Portland area but with the new law it has forced there hands statewide.

I feel that the reality of it lies somewhere in the middle of the two.We found:One Rafter in the attic that was split about 18" from centerline down the roofOne water damage repair previously made by an owner to the floor joists in the crawlspace under a sloping wall.One water damaged floor joist that is literally crumbling in my hand.