Other great places include 28303 anywhere within 5 minutes of a Fort Bragg entry point and anywhere in the Jack Brit school District.

As merchandise any gain or loss on the sale of the property is ordinary income/loss.  

Ordinary business of the taxpayer8.

Instead, all the income and expenses would be passed through to Adam's personal 1040, Adam would report the rental income and expenses on Schedule E (not Schedule C) and his net rental income would be taxed as ordinary income at his marginal tax bracket rate.Adam,I am assuming that you are a new rental property owner.

:Would this pass scrutiny:-1099 you as a quasi Security detail to keep an eye on the place & (if you collect rents) ensure financials are delivered to a secure facility.It may pass scrutiny but it would still be ordinary income subject to SE tax.. which I THINK is what the OP was trying to avoid by proposing the master lease idea :)

Any taxable rental income is taxed at the same rate as other ordinary income.  

Landlord may not collect for carpet cleaning, general cleaning of the house and driveway/patio, or painting, as those expenses are in the nature of ordinary wear and tear which are the responsibility of the landlord.

My taxes for 2019 ended up a bit more complicated than previous years (bought and sold property, traveled a lot for work, had several income sources that were out of the ordinary).

Your flip is ordinary income. 

@Frank Chin  option money is tax deferred.. if the option Is not exercised and the transaction terminated the option money becomes ordinary income.