Take advantage of the BP calculator and ensure you add all expenses.

In the meantime, I will add you to my "101 people most likely to let dishonest people take advantage of".

As a pass-through business entity owner, partners in a partnership may be able to take advantage of the 20% pass-through deduction established under the Tax Cuts and Jobs Act (TCJA).

There are tax advantages and also avoiding probate.

Investment Info:

Single-family residence fix & flip investment in Lakewood.

Purchase price: $136,000

Cash invested: $120,000

Sale price: $265,000

This 3 bedroom and 1.5 bath is in the center ...

I don't see any reason or advantage to quitting your job now if you just want to get into rentals. 

This can obviously be difficult and is often looked at like you are taking money from someone who had that equity already in their home and they are taking advantage of those individuals lack of knowledge or possible pain in their life that is motivating them to sell the home quickly.

The advantages of building new smaller properties is they can be built quicker and leased up to full occupancy faster than larger properties, they are a little easier to get approval in certain areas and site work, stormwater and parking development costs can be exponentially lower per unit or per sqft as compared to larger properties requiring significant site improvements.You need to work the numbers backwards starting with estimated construction and development costs, calculate estimated GPR, back out standard operating cost assumptions of 45%, which is average for most new construction buildings of this size, to get to the NOI to determine if the project works.

If you take all of the tax advantages on deductions which are allowed you will likely show no income on your tax returns.  

There're two advantages you gain: you can deduct all business overhead expenses (as opposed to only expenses specific to maintaining the properties) and, if you have positive net profit after depreciation, you will be eligible for the new 20% QBI (qualified business income) deduction.