I think the idea behind it is that you would be one of the owners of the property, thus any depreciation on profits, appreciation on the property, principal paydown etc., would be a little different. 

Then after a year or two, sell it for a profit?

If so you cannot profit by charging any labor to yourself.

If GC does most of the labor, would it be fair for him to put in $60K, I put in $100K but then we split profits since he's doing about $40K worth of work?

The property under contract:  I found a 3/1 930sqft pre-foreclosure bungalow off MLS listed at $185k, I am using conventional financing but was able to beat out a cash buyer by asking the wholesaler what profits they were expecting to make and cutting them a $10k check and entering into a contract with the homeowner directly at $175k.

Hey Guys, I'm about to go the self employed route and need a little help with how do setup my personal income taxso tell me if I'm going about this right....Heres just a simple example1. 5k rental income- 2k expenses - 1k (salary I pay myself) = 2k net profit - 3k (depreciation) = -1k loss for loss on rental2. 1k salary * 15.3% (med/SS tax) = 153 paid in personal taxes so far3. deduct health insurance/ 7.65% (half of med/SStax)  from personal income 4. carry the 1k business loss to my 1k salaryEssentially not paying rental income taxes and also basically just paying 7.65% of taxes on the personal salary I pay myself.obviously just an example but just wondering if Im looking at this the right way?

As a graduate of the University of South Alabama, she values the importance of supporting her community by serving on several local non-profit boards.

And stepping outside that box is a risky thing these days.So you'll need to watch out for that as well as the extra level of protections necessary to secure the property for you and either provide a profit incentive to the unrelated party or protect them from a taxable event.

They can be good and the area can be profitable.

What you should be careful is the consistency of your bookkeeping whether you book in accrual basis or cash basis otherwise your accountant will be confused when he or she reviews your book at the end of year at filing your tax return.If you are familiar with accrual basis accounting, maybe it is a good idea to book it accordingly because accrual basis is better to monitor the performance which is profit and loss of your business monthly.