Investing in multi-family residential construction?

[Paige Corsello]

Hello, I'll try to keep it short. Essentially there is a property management company that finds investors to pay for the build of duplexes that are then sold for 30%-40% more than the cost to build. Appears to be a well oiled machine in terms of the construction and sale process-cookie cutter 1200 sq ft properties. A family member of mine decided to invest and just closed on the lot. He will be paying cash for the entire thing. If all goes well, I am considering investing. This side of real estate is entirely new to me and I want to learn as much as possible from those more experienced than I. For context, I do have a decent grasp on the real estate market and financing as I have been a mortgage loan officer for 4 years now. Alas I do not know everything lol. Some questions I have:

-What is the capital gains tax situation on something like this? Say I build, sell, and use those profits to build again. Is this where a 1031 comes into play?

-Thinking long term, is this something I could scale to make my primary source of income? The builds generally take between 4-6 months...is it realistic to think I can build and sell two in my first year?

-General guidance for other factors I need to consider???

TIA!