Cap gains would be payable on the down payment received, and on the principle received each year, along with ordinary income on the interest received.  

If you do not adhere to the payback deadlines, the loan will be classified as a distribution and will be subject to your ordinary rate plus a 10% penalty assuming you do not meet the minimum age requirements.

Flips are classified as ordinary income subject to SE tax. 

alas, that was true back east as well. people waiting in the "wee hours" for said type stores to open. here- it is not known to be the most helpful place, even as far as home depots go... i choose my local miner's whenever possible as i get personalized service. they know me, they help me shop, they truly assist. took a client in the other week for us to finish up his back yard space (i designed the xeriscaping complete with dry creek bed etc. after the interior finished) it was time to explore the patio furniture, fire pit etc. said "please let's go to the store i know" to client. we found all the finishing touches exactly as had been imagined, had the best service, got the delivery scheduled easily, received discount (and points!)

If it is you I would do a brick patio.

You will deduct it against ordinary rates(10-39.6%) and then you will have to include it in income when you sell taxed at a maximum of 25%.

Flipping profits are taxes as ordinary income.

Security deposit can be used for damages on the property that are not ordinary.

Schedule C ordinary income subject to self employment tax. 179 on the property doesn't come into play because you don't depreciate flips. 

I was just an ordinary buyer and thought this behavior was wrong.