‘flips’ profit is actually taxed as ordinary income, like a wage.

However, it's a bit out of the ordinary for them to correlate your Facebook friends with past renters (not great logic).

Makes me think though...is the tax I pay on flip income the same as my ordinary income as a real estate agent? 

For example, I initially had my new construction build assessed at $400k, however there were some upgrades along the way (windows, doors, patio, etc.) that will now end up closer to $430k. 

Flipping is just earning more ordinary income.

So the tax would be at ordinary income rate.  

It's hard to find properties in the city with a nice patio and STR potential for less than around 5 million that are reasonably habitable.

The seller is worried the IRS will count the difference between the sales price($80k) and the total loan amount($120k) as ordinary income (approx $40k) and is ready to walk from the deal.  

In Fort lauderdale you usually have to go in and look at microfilm and get original building docs)I'm mainly trying to confirm that the SF is legit and not covered patios or duplex conversions to quads/ non conformingProp tax records usually don't show the real SFAlso any recomendations for a good inspector in Hollywood FL and in Miami?

@Ty GlendenningWhy would you sell a house on owner financing if somebody would pay cash for it.While a lot of people think, seller financing is a great idea, the risk involved to collect the payments that then get taxed ordinary income are equivalent to investing it currently in a treasury bill, which has zero risk.