When you subtract reported income from expenses there is only 3k profit per year.

Hi, I am trying to wholesale a deal that is listed on the MLS from an agent and if I were to wholesale this deal there would still be a lot of room and profit for a rehab to take place. 

REHAB it to make it profitable or increase its revenue, you can't RENT a small business, so that would be omitted.

When it comes to the profit structure for a syndication consisting of a sponsor, general partner, and limited partners, typical splits are 30/70 SP/LP and then increasing the sponsor's split under a waterfall. 

Decided that we could make as much profit by flipping without the rehab.

If you're making thousands on that deal, that $500 "loss" to you now, could be tens of thousands of lost profits in the future if you burn a bridge and they start giving all of their future pocket deals to other investors.

It can make life and business a lot easier, and more profitable for real estate agents, investors, and the companies they work for.

Here's why-https://www.biggerpockets.com/blog/2014/01/18/buy-...Run the numbers and see what is more profitable- buying your own home (and in SF?

We been very profitable.

Or does he have to report a profit of $200k ($300-$100k) upon the today's sale?