There are things that do factor in a flip.

One risk factor to be aware of is that you will basically have close to 0% equity in the property though in the event you should decide to liquidate you may have a hard time getting out of the deal unless you have a plan to force some appreciation quickly. 

So for instance if the seller is saying a 7 cap but then taxes go up 20,000 you are not buying a 7 cap but much lower with the higher cost factored in.

It's easy to blame mistakes in rehab estimates or estimating ARV for failure, as those are things that you can blame on outside factors ("My rehab estimate was off because of all the surprises I ran into when we opened up the walls!"

Whenever I just look at properties on the web for fun I always factor that in when im running the numbers.

There are ways you can defer the tax, such as doing a 1031 exchange and buying another investment property with the proceeds, but that's just a deferral of the tax; you do end up paying it eventually.It's probably not a deciding factor either  way, but it's another thing to be aware of. 

But as for tax treatment you might try Don McCartney Arlington who has done RE deals himself for like 30 years, and he is also a CPA for about 25yrs. 

The final factor will be your personal preference.

At this late stage I normally stay mum until afterward, then have the work done (or a year's weed/fertilizer treatments via TrueGreen) and assess the charges against the deposit.Startup photos and careful photo-documentation afterward are crucial, as well as the need to use professionals for the fix.

There are a lot of other factors that come in to play in this question.