I was buying houses to fix up and resell. 

In a fix n flip you are buying primarily to resell which is why Pratik identified that you'll pay ordinary income. 

I don't live in the market I invest in, and I take a virtual wholesaling approach to everything, stuff I keep and stuff I resell.

Plenty of flips can be wrapped up sooner, but you never know exactly how long it will take to resell your final product, and with foundation issues it can get tricky. 

I offered to buy the home sub2 for the reinstatement amount, resell, and split the profit, with most of the profit going to him.I haven't found an escrow agent in the area to handle it because it's sub2 and therefore unconventional, so I've been looking for a real estate lawyer to act as closing agent.

You didn’t even mention closing costs on both your purchase and re-sell... figure at least $10K each time, more if you’re in a heavy tax city like Oakland. 

It's best to find out now before the purchase than when you're attempting to resell. 

I have about 10 of my properties in process with them.What I like about them compared to standard MLS is one they will work areas were its renter and investor dominated so they get you a fair price.. just try to get your turnkey seller to resell your property when you want to exit  :)...other thing I like is they do their own inspections and work with us on all the inspection issues so that when it goes to market its ready to go.. between their crew and the seller we have knocked out all the important issues and there is continuity in the inspections.. they verify the rents the PM all of that..

Yes, longer is better than shorter (remember you're wanting to differentiate between buying primarily to resell and buying to hold) but most folks feel good at anything more than a year.

If you're feeling the need for even more regulation, note that you should also (or rather) get your contractor license if you intend to Flip - if you're also brave enough to try and grab up a property worth the hassle. " Washington House Bill SBH 1843 (amending RCW 18.27) provides, in part, that if a person or entity buys residential real property and intends to renovate it and sell it for a profit and further will be reselling it within 12 months of purchase and, finally, plans to spend more than $500 in renovations, the investor, or their entity, must be a licensed Washington general contractor. " I sure wouldn't want to rip anyone off.