@Kyle Doney Yes you are correct it depends on the municipality, but generally speaking any time you open up the walls to do anything you need a permit.Here is a list of what we have needed to pull permits for on past projects:Electrical, plumbing, moving/removing walls, new roof, decks, patios, new furnace, hot water heaters, install fence, new driveway, new siding, new windows, retaining walls.If your not opening up the walls and just replacing the finishes in the house generally you will not need a permit.

One thing that worries me though is the fact that we will be paying 'ordinary income' if we sell before we reach the 12 month period for Long Term cap gains...Have any of you had to deal with this before?

Most long term parks require tenants to fully skirt their RV and most tenants who really are staying long term will build an addition, deck or patio, install a storage shed, create a garden, and show other evidence that they have made this their permanent home. 

Front porch, back deck, patio,side yard all fenced, back storage area, two car carport easy to maintain landscaping, ten year roof etc.

For BOTH, the income passes through on the K-1s from the S-Corp or partnership, and will be taxed at your ordinary rate on your personal income tax return.

I withdrew money from my IRA and it will be taxed as ordinary income.

Its not passive any more and now consider writing it off under IRC section 162(a) - "ordinary and neccessary business expenses."

Here's a related thread that might help you: Finding and Researching Private LendersWhile many hard/private money lenders can close quickly, and 4 days is not out of the ordinary for a business purpose loan such as for a flip, your loan will be a consumer loan.

What are your thoughts on holding flips for just over a year to be able to take advantage of the capital gains tax (vs selling in under a year and being taxed at your ordinary income rate)?

If you're in that 39.6% federal tax bracket getting to write off depreciation is much more advantageous than if you're in the 15% tax bracket (isn't marginal ordinary income fun?).