You can't tax a gain that doesn't exist. 

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

We were fortunate to get the ball rolling fairly quickly and only have to fork out 1.5 months of mortgage on our own. my partner thinks he can do all the taxes for the home and depreciation on turbo tax, as that’s what he’s been doing forever since he’s a w2 earner.

I have looked at other areas like Austin and Raleigh, NC and the numbers there are even more crazy plus the I was shocked to see the property taxes in places like Austin, freaking 5K property tax a year on a 230K OKish house.

Remember you don’t have to make quarterly payments related to sale this year if you choose to pay 100% of PY tax as estimated payments.

would you recommend rehabbing over wholesaling or would it be a lot easier to just do judgement liens and property tax as a new investor just to get some capital??? 

@Alex Scattareggia, the withholding tax, as you suggested, doesn't have to be an issue providing that your property is profitable enough.

You have $1.5+ million home and you're paying $2000 property tax a year, probably a paid off mortgage  if you bought in 1970 for example, and can charge market rate rent (multi units are under rent control with existing tenants, generally speaking, but not SFHs so far) Be really careful with whoever gives you numbers on a spreadsheet whether it's a turnkey company, agent etc. 

If I rehab it now, then sell it, I might get away from capital gain tax as I have never rente the old single house before. 

Additional fees may apply depending on the number of days the property is rented.Personal Property Tax: Starting in 2024, California requires some STR owners to report the value of personal property used in the rental (such as furnishings) for taxation purposes.Potential 15% Statewide STR Tax: A new bill (SB 584) may introduce an additional 15% state tax on STRs starting in 2025, on top of local TOT, aimed at addressing California’s housing affordability crisis​(