My question is should I sell now ( subject to short term capital gains, self employment taxes) or rent out and sell after the one year hold ( subject to long term capital gains) ?

IRS says it's inventory, in a business activity, not a long term investment.....subject to ordinary income tax, including both sides of SS/Med (15.3%).

Obviously subject to state law, these are done all the time and are generally completely legal, @Deano Vulcano.

Typically, the entity that is created for the deal will own 100% fee title to the property subject to any assumed or originated secured debt.  

But started buying junk properties for under $10,000 using all the creative formulas I could think of (credit cards, commercial over draft protection, credit lines, partners, lots of Subject to Existing Mortgages, delayed settlement, flips and seller/contractor partnering). 

I've read plenty of books on the subject and actually found this website reading one!

I am only required to pay the interest every month, which I frequently pay from the same account.As for your first question.

There are tons of threads on this very subject.3) As one of the other posters mentioned it may be difficult already to sell to a fannie or freddie financed buyer.  

If, for example, a good friend of yours owned a property, and he needed $13k to rehab it, you can absolutely lend him the money to rehab the property and structure the terms and repayment however you like (subject to local and federal law of course).

Then I would check the arv of the property and the amount due on the mortgage to see if you are underwater or not .If everything checks out you can do a subject 2 whereby you take over the mortgage payments and go thru escrow.