But I would be operating out of the Houston area!

And a flipper is basically a small scale developer, so you will not only have split, but also various fees for your services: acquisition, disposition, development/construction management, etc.Some MF operators have a pref + carried interest, others have a straight 80/20 split from day one.  

@George Azita The sale would not have been canceled unless the Trustee accepted payment in full, agreed that the sale would not move forward (verified settlement imminent with payoff in full forthcoming), or was prevented by operation of law (BK filed, etc.) 

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

Funds to close were provided by the equity partners in the deal and from cash accumulated from the operation of other rental properties held in the portfolio.

These deductions apply to mortgage interest, property taxes, operating expenses, depreciation, and/or repairs.Landlords can deduct the ordinary and necessary expenses for managing, conserving, and maintaining their rental property.

Do you own all facets of the operation?

Over the past 4 years, I've gained a significant amount of experience including a large respect for how important it is to truly understand your market & have many personal connections with people operating within it (Agents, Wholesalers, Contractors, Subs, PM's etc). 

Over the past 4 years, I've gained a significant amount of experience including a large respect for how important it is to truly understand your market & have many personal connections with people operating within it (Agents, Wholesalers, Contractors, Subs, PM's etc).

We made a decision to do a DSCR loan and our lender asks us to redo the percentage of membership on the operating agreement.