The property has a 3 bed 1.5 bath main house which is in need of renovation which we will be doing all ourselves ( I am in the construction industry so i am not worried about the renovations).

I don't think the house is constructed that well.

My wife and I are a team as well, she is also in the construction field, she is part owner of a General Contractor Construction Company.

I don't think you can just distribute loan proceeds via a K-1 so I have not figured out how to make this work.Another radically different plan is I could easily construct an equity portfolio using REITs that would produce the same or better ROE with less hassle.

I eventually would like to exit the construction industry and rely on my passive income as we all eventually would like.

Alternatively, you can look into 203k loan.For new investors we typically lend 75-80% total loan to cost (purchase + construction).

Virtually, no business has books so-organized that they have that much control to manually manipulate their tax bracket by giving money away.A few years ago, my plumbing, heating and construction business was doing about $7 milion per year and my rental units bring in about $4 million.

Hey BP fam...I've started doing some research into flipping new construction and I'm super interested in hearing about the process, success stories, horror stories, etc! 

I do have a rental and I am in the construction business.

Today, the area is gentrifying bit by bit and the light rail is currently under construction.