Far better than anything you could have done in a stock fund or just about any other real estate investment.As someone who once had 83 sfh rentals in middle class american towns here in illinois, these str's here are without a doubt far better investments.

But if you have done cost segregation studies and have 1245 / ordinary recapture to deal with, all of that income is taxed in the year of the sale, regardless of what you received for proceeds.Not previously as big of an issue, but in this world that we have had the last few years of 100% bonus depreciation, it is rearing its head more and more often.

Chris Lewis American Modern. 

Active Income: Profits from fix & flips are considered active income, subject to ordinary income tax rates, unless structured through a business entity.4.

I ran the spreadsheet that @Scott Trench has on the article "Millions of Americans Should Keep Their Homes as Rentals, Not Sell.

If you convert your shares to a promissory note that may trigger depreciation recapture at ordinary income.  

Here’s a summary based on the responses:Tax Rates and Holding Period:For flips (properties bought, rehabbed, and sold quickly), profits are taxed as ordinary income, not capital gains.The holding period is calculated from the purchase date to the sale date.1031 Exchange:1031 exchanges apply only to properties held for investment, not quick flips.If intending to use a 1031 exchange, I must reinvest the proceeds into a like-kind property within 180 days.Holding a property for less than a year may disqualify it from 1031 eligibility due to lack of demonstrated investment intent.Thanks again for all the helpful advice!

Scott Trench's new article   Millions of Americans Should Keep Their Homes as Rentals, Not Sell.

Like many of my fellow Canadians and many Americans, when I think beach holiday, I think Mexico.

Unfortunately, as my search for the perfect property began the same people who had rented RV’s and stormed into the wilds of American were also now on the search for a second property.