Downs: 4 bed 2 bath, asking $59k, ARV in today's market about 90k, ARV in a normal market, about $117k Repairs: Interior paint Carpet Appliances Pest control (bugs) Landscape Misc expense As you can see, property values have dropped a bit in the areas that I have targeted; this implies that I may have to lower my price expectations for selling them to retail buyers; which I will; lowering the current ARV range to $90k.

You are a "banker" - make certain you in no way use your fiduciary capacity to "make this deal" happen - You know about the $8K - do not imply nor in any way not disclose the $8K - you can get in very big trouble for that.

This post title implies that the guy was found by his blog or online postings.

I understand that it is a frequent practice of unlicensed persons to have the property owner obtain an owner-builder permit that erroneously implies that the property owner is providing his or her own labor and materials.

I did not mean to imply that I was writing my own contract, or editing areas where I have little legal knowledge.

First, you said with your parents credit, implying the purchase/deed were in your name.

Doesn’t “value add” imply an increase in value or equity?

I am guessing that the tax adviser you are talking to (incorrectly) believes that the three year window on the capital gains exclusion will have closed before your projected sale date and (it seems to me) this is why you are apparently being told to make it appear that you have reestablished your former home as your primary residence.The advice you are being given implies that you will also have to take your property out of service as a rental.  

In Inland empire though, I would need $2M ( actually implying higher down payment), and hence leaning towards Phoenix.

Currently my plan is to move to Orange County after getting the license Real estate is something I've had m eye on for a long time, and after seeing colleagues successfully make it as agents, it prompted me to finally make the switch I've been a personal trainer for 8 years, so real estate is an entirely new endeavor.