However your situation becomes a trickier case study since these properties first served as your primary residence which could provide additional benefits form a tax perspective not available to an owner of investment real estate and nobody has a crystal ball and knows the property with certainty will transition into an investment property. 

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.

Tax Considerations: What taxes should I be aware of for property management services, even if the properties are mine?

If your intent it primarily to resell (the definition of a fix n flip) then you can't 1031 it.But that being said, there are a bunch of my clients over the years who have shifted their model slightly so they can get the adrenaline rush of fixing and the tax deferral of 1031.  

Take into account variables like affordability, property taxes, rental regulations, and vacancy rates while doing in-depth market research to find viable investment areas.

A bunch of muni's (tax free), some treasuries, VOOG and maybe 10% to dabble in real estate. 

Accountants are in such demand, that the best are not even accepting clients half the time.The other problem I see often with accountants on here is that they specialize in larger investors, and have really high prices when you as a smaller investor do not need all the bells and whistles.Another thing I see is folks thinking they need to have a tax professional in their state.

I bought 10 acres of vacant land in Joshua Tree CA at the county tax auction. 

Can I avoid paying capital gains tax some how?

We had a large claim many years ago and it was too late for the insurance company to cancel us.