I am not considering maintenance and capex in my tax deduction calculations since they are infrequent and irregular (also good to have worse case scenario projections).

My ceiling was 60k.

Curious — when you team up with investors, what do you usually find works best to keep projects moving smoothly for both sides?

Actively performing plumbing work for remodels, new construction, and commercial projects qualifies as a real property trade or business under the IRS definition, as these activities fall under construction or reconstruction.

When you’re analyzing a flip, how do you set the ceiling for rehab costs is it percentage of ARV, lender limits, or gut feeling based on comps?

Since I have construction experience, he’s interested in partnering with me to build more units.The property originally cost him $600k, and the projected added value is about $2.4M.

The amount of or Contingency Expense (or "buffer" as you call it) you use is dependent upon how risky you view the project.

Just scroll to the bottom of your listing link and you can see 4 places that are quite a bit nicer for under $1500.You are offering small 900sqft with an original kitchen, only ONE bathroom that is dated and has no counter space, an interior that is a mix of finishes and colors, tile ceiling, super basic light fixtures, no garage and a totally overgrown yard - all of that screams total neglect.

I would want a 15% projected IRR with a min 7-9% preferred return. 

Curious  for those who started with flips, how did you fund your very first project?