Instead of buy fix flip, you could buy fix rent then evaluate after a while and then either hold and refi or 1031 into another property.Doing it this way opens up numbers of tax mitigating opportunities including depreciation, 1031 exchanges, a shift from ordinary income tax to capital gains, etc.There is no statutory holding period, only the question of your intent.  

Flipping is ordinary income tax plus self employment plus aca surcharge. 

Basically you are stuck paying the taxes at your marginal tax rate as flip income is taxed as ordinary income. 

Or perhaps a front patio will work to save money?

@Tim ODonald, Whether or not a profit is taxed as ordinary income or capital gains has to do with two things - Your intent and the length of hold.If you own a property for more than a year and sell it is taxed at capital gain UNLESS... the IRS determines that you purchased the property with the primary intent of resale in which case the asset is treated as inventory, you are a dealer you pay ordinary income tax.Having an LLC does not change the above. 

If your passive loss is greater than your passive income, then your net passive loss is carried forward to the next tax year.There is a special rule for residential rental property activities with active participation that allows you to use your net passive rental losses to offset up to $25K of your other ordinary income.  

If you are able to implement a real estate professional status tax strategy (REP) you can use passive losses from syndication deals to lower your ordinary W2 income.

The UBIT would come into play if your 401k generate unrelated business income, i.e. you run an active trade or business in your 401k such as flipping business, purchase franchise, etc.If you decide to rollover your old 401k into Solo 401k, and then convert those funds into Roth - you will pay ordinary income tax rate on the amount of conversion.

I plan on setting up another tab to keep track of when "out of the ordinary" events happen (transfers from me into the LLC, if I accidently pay for an item with a personal credit card, etc). 

What is ordinary wear-and-tear?