I can still sell at a profit and after rehab it cash flows very nicely. 

Try looking at:The Best Types of Markets for Profitable Turnkey PropertiesandWhat to Ask When Working With a Turnkey Provider

I would use this profit to purchase a multifamily property, that is a good deal of course.

If you do so the income from that asset now becomes taxable income, whereas any income generated by the asset inside of Roth 401k can be pulled out as distribution tax-free. 

Do you try to pay based on what you think the value the property is generating, prior to potentially gaining the upside?

So many of the variables in your analysis would be people and their opinions on value and where the market is going.As you mention, after tax cost is a concern as your rentals may be generating taxable income however your rent is not tax deductible. 

hey Kimo, you basically get the sellers property and you put it under contract yourself if the property is undervalued enough for you to make a profit from that property AND the buyer. then you just sell the contract to the buyer thats interested in the property and you make a nice profit from that wholesale deal

So complicated question...If me and my 2 partners set up an llc (declare to tax as pass through partnerships) for the sole purpose of flipping homes and assuming we each make a profit I’d 10k per year.

Yes, its very exciting b/c it's affordable to buy and you can pay it off within 5 yrs and it cash flow's from day one as opposed to NY where everything starts at almost $1M and the only people that will ever see a profit will be your children.  

I'm here to learn how to leverage that to generate more wealth and income for our family.