What if after you pay off the loan the seller never hands over the executed deed? 

Cite relevant portions of local/state laws that describe how the landlord is able to evict tenants.Remind them that if you execute an eviction, an eviction record will appear on their background check, and will be visible to any future potential landlord or employer who runs a background check on them, and remind them that virtually all landlords and employers run background checks on potential tenants/employees.Also, remind them that if the property is not vacated by X date, their deposit may be retained (mention this even if you planned to retain their deposit anyway because of the lease violation and property damage).In your notice, reference the lease violation, the police record of noise complaint, and the property damage to emphasize the point that you have legitimate reasons to evict them and retain their deposit, if needed.In a nutshell, remind them that they have a LOT to lose if they do not vacate, and that they have a LOT to gain if they do vacate.

The main reason here is that because of how commercial properties are underwritten on value - they analyze the last 2 years of rent rolls - it takes significantly longer to execute. 

Usually this is an easy decision as most cases trying to sell a brand new built and compete with builders on their own product is very difficult to due............unless the market has blown up from the time the contract was executed and the acquire time has experience a huge appreciation.  

But good thing about your case is you execute first before wondering about tax, most people is the other way around and never execute :)

Your plan is less important than whether you will be able to execute it or not. 

@Kevin DombrowskiIf you are in fact buying the property from your family member and they are executing an arms length one year lease with security deposit, for fair lease value, you should be able to both get a fix and flip loan as well as also cash out at the completion of the construction project.

The tenant would simply need to execute the new mortgage... which he has every incentive to do given that it would be the source of his proceeds.

NDA required for full Executive Summary.Thank You.Joe Crawford

.#7: Focused Marketing - Be wise about how you execute marketing.