Trying to structure a unique situation

[Darrin Jones]

Long background: I am currently looking at getting into real estate investing doing flip to hold rentals in my area. I have a unique situation where I may be medically retired from my government job due to an on the job injury (back surgery/nerve damage) I am still able to do physical things but may not be able to stay in the job based upon it's requirments (Law Enforcement). Being that I sustained my injury as a result of a dangerous situation, I should be getting a tax free lifetime retirement. I am also in my younger 30s so I have the time to put in sweat equity into the business. 

Looking towards the future I had a previous background in property /operations management, I want to do REI (was a long term retirement goal) and wish to get into contracting/carpentry (always my backup plan). Flipping houses and owning my own business seems like a great way for me to do what I want, at my pace without going back into the general job market.

My plan is to get my real estate license while I am currently doing my rehabilitation. If separated I plan on going to a local tech school and getting my general contractor cert/license. I do plan on working for a contractor for a bit to learn as much as I can from them. I want to get into contracting and specifically buying/renovating/renting out local properties for a passive income stream. Being that I would get a disability retirement salary I am able to focus on learning and slowly investing and flipping without personal financial constraints. I wish to do side contracting jobs or even other flips to fund the business. I would then continually reinvest the funds back into the company, for several years. Down the road I would like to continually multiply my rentals to have a comfortable passive income. 

Here is my question: How would I structure this buisness, with the caveat that I cannot make over $55k in personal income to not pass my income limits on my tax free disability retirement? If I exceed it I lose a dollar for every three dollars earned and convert it to a taxable income, so it is a double hit. Should I have the buisness as a LLC under my wife and myself's name? Should I seperate the construction company and the properties? How would I set this up where I won't be exceeding the income limits I have and not being taxed twice on doing my own repairs to my rental property. Should I start out in my wife's name to purchase the properties and do the work, hold them and rent under an LLC? My wife has a background in property management, UX design (will do the website)and will help pick the properties and list them. She will be doing work here not just a tax loophole.

Incorperating as a C or S does not seem like a good tax strategy for long term holdings. Thoughts?