Pretty much all major components were newly installed / fitted and done to a tasteful standard (new metal roof, plumbing, electrical, kitchen, flooring, bathroom, doors, new hvac, decks, vinyl siding etc) and I have visited and walked through 3 times and even been under crawl space to inspect a repair that was previously noted on an inspection to the foundation after termite treatment which looked to be a good job.

Does the IRS demand consistent tax treatment?

Often times we look the other way and let these folks get away with their actions, which only compounds the problems for everyone.If you search "ethics" on BP, you get about 9527 results on the topic. 

While minor drips or small stains may be considered normal wear and tear, a large and excessive oil stain that requires significant cleaning effort or solvent treatment goes beyond that.

It has slowly groomed my work ethic and I am still always learning.

This would qualify the property for long-term capital gains treatment. also, if you command decent rents, it’s going to help you flip that property at a higher price point with solid tenants.I also agree with the sentiment that if you decide to flip it and pay tax that’s a good problem to have because it means you made money on your flip and that’s the goal!

From my online research the prices are too high and pretty much a not so ethical way off doing business.

I'm sure this is taking quite the emotional toll on you, in addition to taking away precious time from your day where you aren't able to source additional deals.I would also go after the lawyer and report this conduct to the board of ethics. 

If the later is the case, unless your contract with that buyer had specific performance language in it, there is nothing you can do.As to the advice above about potentially clouding title, you are now entering the legal realm and you should NOT be taking legal advice from anyone other than your attorney as clouding title in THIS case can swing back at you from the original sellers for not performing and claiming damages against you.If you intend to wholesale, you need to do it legally and ethically and in many states, that requires either a license, closing on it with your funds or borrowed funds, then marketing for resale once you have title, or having your buyer upfront, forming a legal entity with both you and buyer as owners.

These are professionals with additional training and a stricter code of ethics.