Many of us who have first hand experience on how things went right and went wrong. 

We started paying him $12/hr and now pay him $14/hr and will plan on giving him a nice bonus once 2 ongoing projects are complete, here in the next few weeks.He gets to learn stuff, both on the hands on side, but we're happy to share more of the business context and bigger picture. 

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.