Most people can not visualize what an ordinary empty room will look like when tastefully furnished, let alone a strange space.  

If it were just a flip house, you'd pay ordinary income tax.  

Since the income from the sale of the home will be ordinary income then you could build inside a "Sub S" corporation which would be the cheapest entity to create.

The main difference to look for in these two entities is that the LLC has SE tax on ordinary income, so you do not want to have a management company being an LLC.

I recently cut down a large Black Walnut tree in a patio area located in the backyard of my rental property.

It'll be owner occupied.So here's the poop:150y/o brick 3 story. 2000 sq'Needs: New roofpartial gut8 new windows (4 "historic" inserts)9 repaired windows2 new exterior doors and 1 rotted sill replacement.all new plumbing (3 baths 1/2, full, 3/4)mostly new electric (if only to sleep better)new furnace (though there are two on premises)A/Csome refinished floors, some carpetnew kitcheninsulationframingdrywallWe'll also want to deal with a concrete patio that's draining water toward the foundation before it causes problems.The place is in a transitional neighborhood (i.e 1 block away $300k homes and $150-275K condos, but plenty of ratty joints too).

Either way you are taxed the same (as ordinary income) so it doesn't matter.

Worst case, you buy one that's ground floor with a patio instead of a balcony, but if it's basement, stay away.

Be aware of taxes as well, a flip would be ordinary income for tax purposes. 8)

If it is held less than 1 year you will be taxed as ordinary income.