Fix and Flip Tax Business Strategy Question

[Graham Melvin]

Hello real estate investors community.  

My question is about how fix and flips are taxed.  It seems like everyone talks about turning properties as quick as possible, however it's my understanding that if you turn it in a year it's going to be earned income and you're going to have to pay FICO (14.2% for self employed) on it and it will be taxed at your top income: assuming at least 25% tax rate.  

Am I correct that if I do a fix (say in 3 months), then refi my money out of it and rent it for another 9 months so I hold it for a total of a year.  That at that point if I sell it I will only be paying long term capital gains at 15%?  

My follow on question is if the above is true: why doesn't everyone do this and pull their money out after they fix it so they have money to start another fix ever 3 months and just have rolling 12 month projects where you're leveraged for the last 9 months of it in order to lower your tax rate by ~24%?

Thanks!!