@Patrick Flanagan I am not a CPA, but from my understanding there is no way to take it over 30 years even if they seller finance it. it still counts in that year of the sale, that being said, long term capital gains is less than ordinary income would be, you can remind her of that.

However, the amount you withdraw is still subject to the ordinary income rates.

Getting something under contract is basically you saying "Assuming nothing out of the ordinary is going on here, then I will pay X amount for this property."

But, the sale of a flip is generally considered ordinary income by the irs subject to self employment tax.

Wouldn't the real estate carry back losses have to offset other capital gains but not ordinary income he made

You want to create a guideline for things such as, what kinds of maintenance requests are deemed "urgent" or "emergency" - and how will you handle those differently from an "ordinary" or "non-urgent" request?

It's an ordinary home in an older community of older homes, nothing special.

You pay that when you selDo you mean for ordinary income tax based on cash flow profits?

@Ed Balado Your private lender will be taxed on the interest income at her ordinary income tax rate, just like earned income from a job or interest on a bank savings account is taxed. 

Capital gains rates are often better than ordinary income tax rates.