Tax advantage of selling as a rental vs a flip

[Curt Smith]

We have an odd situation; We bought a property with the intent to rent it post rehab. We advertised it for rent. Got a renter but just at the last minute we agreed to owner finance a sale to the almost renter turned buyer.

Since the in service period for this rental was ZERO months there is no depreciation deductions, or are there? What other deductions are in play for rentals but not for flips?

It seems to me that this sale is a capital gain and not ordinary income which would be the case for the income from a flip.

BTW we don't do flips, we put into service 2-4 SFRs per year so it's legitimate that we call this deal a sale of a rental.