You don't get long term capital gain treatment for flips. 

Just in terms of the tax treatment - it could get more complicated. 

@Eric Long - the idea being to take a loss on cashflow every month to lower taxable income while banking on appreciation and the favorable tax treatment of long term capital gains when they sell? 

Also I remind them that they will be charged for treatment if bugs are found in their house.

Furthermore, the Internal Revenue Service has also taken the position that if the replacement property is sold immediately after your 1031 Exchange transaction is completed then it was not held for a sufficient period of time to qualify for 1031 Exchange treatment.Little Definitive Authority on Holding PeriodWhile there is no actual holding rules or regulations and very little definitive authority on a holding period, in one private letter ruling the Internal Revenue Service has stated that a minimum holding period of two (2) years would be sufficient to meet the Qualified Use Test, and a number of court decisions have also taken the same position (although they have been somewhat more liberal than the Department of the Treasury and the Internal Revenue Service).Intent to Hold is Important FactorThe period of time that you hold title to the property, although important, is not the only factor the Internal Revenue Service will use to determine whether you had the intent to hold the property for investment and therefore qualify for 1031 Exchange treatment.

The addendum is not free license to have any animal, but rather a specific one.The Pet addendum specifically outlines rules and regs and states specific violations such as noise, treatment, being left unattended, leashes, dog houses and anything else you need, and specific actions for violations (this is signed by tenant)Pet deposits are per animal.  

As long as you are not pregnant, the Zika isn't that bad (if the microcephaly-Zika connection is even true in unborn children) and the Chikungunya is tuff but it won't kill you as long as you get medical treatment early.

What are the key points to focus on to help visualize the arrangement?

Properties bought with the intent to rehab and sell or flip do not qualify for 1031 Exchange treatment. 

Its the best tax treatment we have the in the US>. so you can sell it tax your gain TAX Free then go shopping.. once you turn it into a rental for a few years the tax free is LOST unless you move back into it for a number of years.. then U have to take depreciaiton on it.. and then if you then sell you have to recapture...