To further clarify:The RS-3 Zone allows for 1 and 2 unit residential buildings; and requires 2,500 sq.ft. of lot area per residential unit (with some exceptions).

What they're seeing is a drop in repeat customers.  

I have done 2 successful flips and also have one 1 buy and hold.Now that I have a little skin in the game I’d like to ask my dad who is 62, with a 6 figure 401k to allow me to use $50,000 to invest in more real estate.

Active means the flipper allows you to be part of the entire experience (from a management perspective); i.e. riding shotgun.

Sidenote: I occasionally build custom barrel saunas for my employer based out of Bend.

Did you have difficulty finding properties that would allow you to arbitrage? 

For example,, if the house was worth $200k and the lender needed a 75% loan-to-value, they would only allow for $150k financing on the house. 

We had one tenant who would bring different guys over almost every day and it was weird for us lol but we never told her she wasn't allowed to have anyone over so we just let it be because she was a great tenant besides that.

I would take him up on it since you have absolutely no risk.Unless you sign some sort of non-compete and are not allowed to do deals outside the partnership until he recoups $500k then that would be a large potential issue.Good luck!

I own a custom theming company that has themed most of the homes in the area and a property management company that manages them.