And evaluating the track record is a call that's made first by the taxpayer or their CPA, and ultimately by an IRS auditor (should one get involved). it is very true that the IRS cares about intent with respect to capital gains in real estate -- I've certainly seen cases where the statutory timelines were less important and the identified intent of the investor.with respect to determining whether you qualify as a developer or an investor, it's much more of a "forest" than the "trees"...so holding any given investment for 14 months prior to a flip is certainly no guarantee of receiving long-term capital gains treatment.I hope this helps.  

If it were me I'd fix it up to rental quality, no furnishings and rent to the first qualified tenant to apply (3 x the rent gross household income, no history of court with or debt to prior landlords). 

Research more comps prior to purchase.

The duplex I bought about 6 months ago (in 2023 as the market cooled off) came in under my appraisal, which means I had free equity, and I paid less than 60k of what he had it listed for on the market a few months prior. 

I think we can all agree that the potential risks involved are something to consider prior to selling a property using seller finance.  

I had put in the MDF cabinets because the wife liked the look and that was prior to any decision to turn it into a rental.

And if you've lived in it for 2 out of the 5 years prior to selling it then you get the $250K primary exclusion. 

My loan officer mentioned that the title company had the complete package four days before the closing, and my cash-to-close amount was confirmed three days prior to the closing date.

If you ever find yourself under contract on another property with an FPE panel, I'd recommend having the seller replace it prior to closing as it's a well known and documented safety issue; textbook inspection objection item.  

As I mentioned in my original post, this is one of the two main risks you run when buying a property pre-construction when the project isn't fully pre-sold prior to your purchase.On a more general note, 300k is expensive for a 2bed2bath and won't give you the best ROI.