IRS "Real Estate Dealer" status permanent? Buy/Fix/Flip 4x year?

[Jay G.]

I'm currently rough planning to purchase foreclosures on the courthouse steps (up to around 4 per year) with the desire to fix and flipping them within a 90-120 day window (notice I didn't say intent there). The plan would be to do this for a couple of years to build up capital to be able to buy a few properties and hold longer term later down the road. I do not necessarily need "income" from this, although I suppose it could potentially generate more profit than other income sources. 

After reading about the "dreaded" IRS classification of "Real Estate Dealer" and the long list of negatives of being tagged as a dealer. It wasn't clear to me, is that classification PERMANENT? Or is it just for the investment home(s) you currently have? I've read some cons like "you'll never be able to do 1031 exchanges again!" - which would make me think the classification is applied to the individual taxpayer and permanent.  

I think I need to take a couple steps back before taking the plunge at the courthouse. I don't mind paying a little extra tax to accomplish the goal. I just want to be clear when we execute the plan and not have a "gotcha!" years later from the IRS. 

I'm also trying to understand the best structure for this. From what I've read I guess it may be LLC with S-Corp status, or straight S-Corp.