For tax free treatment,  If S-corp creates 100% owned LLC, and if you want to contribute asset to that LLC without tax implication, you and S-corp would be a partner in that LLC, and it would create a partnership, not a Single member LLC. 

The short sale gets preferred treatment because the lender does not get stuck with more REO.

In treatment now, the meds kept me up, so here I am at 3:30 am!

States do not always follow the federal estate tax treatments.

So, no tax benefits.Flips on the other hand are often done with an LLC with S-corp tax treatment to help minimize tax issues.

My advice...get at least two quotes on everything, make sure your roof is leak free, make sure you get a termite treatment (tent...spot treatment is BS), find an area you like, and get a property there.

The water requires minor treatment, but things can certainly change with our wonderful public office folks.Great tips on the septic inspections & pumping, I'll implement that if we close.  

@Jason Hirko  throw in a few nice hail storms and there ya go.. we are moving to Vegas this winter and changing to NV tax treatment..

Treatment of discounted notes is very different from installment sale - which is what Linda described. 

Just like there is precedent for entitling raw land but not turning a shovel on it and still be eligible for 1031 treatment especially if you feel you can demonstrate that your intent was not primarily resale and some time has passed.