You also will likely want to understand the costs included in purchasing and renovating that either get capitalized or deducted or no treatment.

In order to have long-term capital gains treatment, outside of inheritance situations, you must have owned the property for at least 1 year. 

., Without documentation that the property has been held for investment it would not qualify for 1031 treatment. 

Even the most well documented exception in the special treatment of one borrower over another is going to get the lender fined or worse for not applying that same exact treatment to all borrowers.

So I get the worst of both worlds treatment. 

He gave me the same treatment.

P2P income tax rates are higher, and treatment of losses is less favorable. 

An LLC is established by state statute, for federal taxes you'll be treated as a disregarded entity (if you're the sole member) or if you have multiple members you'd be treated as a partnership, or you can elect S or C corp treatment. 

If the builder announces a new shopping center and all the area around it is vacant land then the value would likely climb but if a builder announces a water treatment plant and the area around it is residential homes then the value would likely drop. 

I offered $38K, all cash, 5 day closing, no inspection but they had to pay for termite treatment.