The longer that you rent the property more than 1 year the better your argument.On the surface the issue seems easy, less than 1 year, ordinary income, more than 1 year capital gains, but the reality it far from that easy, as I said there are those 8 criteria.Hopefully this is academic question for you and you never have to actually have to go to the mat to defend you're position, its not a pleasant experience.

MAT as they are also know services small to medium size REI.

Mat Sorensen has written a book with a pretty comprehensive scope. 

You sound like you might get strapped just with the purchase of the property and taking out a personal loan to furnish could push you over the edge.Do you have some storage space?

And then take your estimated labor + mats cost and double it because you're brand new and you forgot something probably big and expensive.  

I've been to the mat on this issue, so I'm very familar.

We at uDirect IRA Services often refer people to Mat Sorenson of KKOS to answer these types of questions.

I add new areas rugs in high traffic areas (leave tags so tenants no its new)... and mats at the entries.

Originally posted by @Marc M.:At

He may be cash-strapped and pressed for time (glad I dropped out of pre-med in the early 1970's).I would inquire as to his plans for the property.