Flip/LTR Hybrid? Tax incentives?

[Bryan H.]

I know the Pros and Cons of both Fix and Flip and LTR. I was wondering if anyone has dabbled or knows anything about a hybrid option. I know on flips it is considered traditional income due to being classified as a dealer (someone who buys for the profit of the sale) and not an investor (someone who buys for the profit from rental or other forms of income) but what if you bought and renovated a property and held it for one or two 12-month leases? Wouldn't this property now qualify for the 1031 program and defer your income taxes? If so why are there not more flippers doing this?