Added back patio, new front and back door, painted interior, exposed original brick wall in living room.

Assuming nothing out of the ordinary, it will all come down to the taxes.

If the activities rise to the level of a trade or business and you/the entity are/is a dealer with respect to the mentioned properties, the income would not be capital gains but instead ordinary trade or business income subject to SE taxes.I'd recommend you engage a professional to help make the decision (especially if you expect first year net to be $300k), as there are qualitative and quantitative factors that need to be considered. 

Otherwise, I love seeing out-of-the-ordinary rentals available as I feel that with the snowflake movement, a lot of younger renters are looking to move away from the beige and grey of everything else and not enough owners are taking the risk you're taking to grab them!

The siding and rear screened patio were in fairly good shape so we decided to keep them but thoroughly cleaned them via power washing.

If you just deposited her ordinary check clearing can take 10 days.

9.43.010 COMPATIBILITY IN RESIDENTIAL ZONESNo person shall construct any dwelling, accessory building, or structures, improvements, patio covers, roofs, balconies, decks, porches, terraces, exterior steps or stairways, walls, fences, antennas, spas, swimming pools, or make any additions to, or modify, any structure, or install a new roof on any structure, on any parcel in a residential zone in the City for which a building permit is required unless the resulting construction is found to be compatible with the neighborhood within which it is located.

Because I heard that if you are tagged as an active investor/dealer, you have to pay ordinary income tax, you cant do a 1031 exchange, you can't have tax deductions and I think you also have to pay self employment tax or something and I don't want that to happen to me if I get started.

Sale price - selling costs- purchase price - improvements - depr = Taxable gainPortion attributed to depreciation is at ordinary tax rate not CG up to 25%

Dont want to turn passive income into ordinary.