But flipping income is usually considered ordinary income and not capital gains if you are in the business of flipping house. 

Also, the taxable portion on the sale qualifies for favorable capital gain treatment.The current maximum federal income tax rate on long-term capital gains is 20% for taxpayers in the highest ordinary income tax bracket.

That's taxed at your ordinary tax rate. 

Okay, this is an ordinary sale.

If you are already high in ordinary earn income, do you really care about immediate cash flow?  

Also, when you withdraw it is taxed as ordinary income.

I don't recall there being anything out of ordinary when I read through it initially.

But as you and many others said, this is just an ordinary buy, nothing to get excited.

The $5000 is ordinary income for you, so the tax is the same regardless of how you take the money.Any cash that changes hands really should be on the HUD-1.

I've seen flips county as ordinary income not capital gains (@15%) plus you have to pay self employment taxes on it.