Profits moving forward are split 50/50 in perpetuity.4.

I do not need to make a big profit but do not really want to go through the hassle to lose money.Thoughts?

@Surendra Chawla No I have not, but I have lived in Chandler many years ago ('00-'07) and have owned a SFH there (5 mins to Intel at Ray/Rural) which yielded a nice profit back in the day.

In 5 years, the novice investor will have paid us $39k (a small profit for us) and will then own the home.

Problem is banks do not like tip income and also I have many expenses for the business so it doesn't show much profit, even though many of these assets (truck, commercial mower, etc) will be paid off over the next 1-3 years.

Somehow I had never heard of this before and kind of stumbled on the info while talking to my lender how some of the flips I'm doing (thank god I did too).The flip rule prevents flippers from selling their projects for a profit for the first 90 days, beginning from the day the deed is recorded.  

The margin for error is just to slim when you are borrowing at negative leverage.I would love to attend one of @Jeff Greenberg's meet ups and will try to fit it into my schedule. 

Sell for under market value where you still profit.

But depending on how much you take out, your property may cash flow the same ( you are financing more but spreading over more years, so payments may end up being close to what your paying now) you will get another property with income that may be your profit. 

My goal is to build a solid portfolio of rental properties and supplement the portfolio with fix/flip profits.