They do offer leases up to 24 months so that wouldn't be out of the ordinary for them.

Yes I didn't qualify for the partial...From what I'm reading the gains will increase your AGI  but it will not bump up your ordinary income into a higher tax bracket.

@Adam FrancoFlips are recorded at your regular income tax rate, subject to self-employment tax.You figure out your final cost basis (purchase, rehab, insurance, property taxes, financing, permit fees, commissions, utilities, etc.) and the difference between the sales price and the final cost basis is the profit made that will be taxed as ordinary income.You should speak with a CPA to help organize things and try to minimize the tax impact.

A business expense is defined by it's nature of being ordinary and necessary, not by how you hold the asset.

Pet rent is not a deposit so don't count it toward the cost of repairs.Scratches in the wood floor would probably be considered ordinary wear-and-tear unless it's excessive for the situation.

Short term is taxed at ordinary income brackets.

@Jessica RamseyFlips, property held for less than 2 years for the intention of holding out for sale, are taxed as ordinary income.

I know there are opinions cautioning attorneys when getting involved in transactions involving an ordinary consumer on the other side.

Also, just an idea, since you have your hands full now, perhaps consider starting with a passive strategy (aka syndications), and then move to something more active once you have your passive income stream.In terms of HML, I would refrain from it since you're W-2 employee and your HML earnings are taxed as ordinary income (aka at your W-2 rate). 

This would classify him as a builder/dealer and hes going to pay ordinary income on the income from the construction sales.