Then I paid the taxes and got the 10k back that I had paid for the tax lien. 

Malibu allows it but requires a 15% "hotel tax" on the gross revenue.I would recommend looking out of state or underwrite the property as a long term rental in the event laws change.

Definitely don't recommend doing an early distribution and paying the taxes and penalties. 

I guess the decision is do I want to pay taxes on the seed or the harvest. 

Bridge, portfolio, foreign national and other specialty loan products.Key Bank, FLorida flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary.

Tax Advice: What tax considerations should I be aware of as a Canadian investor doing Fix and Flips in the U.S.?

I'm interested in learning all aspects of RE, including self managing property, and maybe get into STR.This being my first deal, I'm not confident in finding more flips, so I want to defer taxes to preserve my profits. 

In my opinion, I wouldn't worry as much about cash flow and just make sure your PITI (principal interest tax & insurance) less rental income is less than you would pay for rent in that particular area. 

Easier to do your taxes as well.....Search here about the need for an LLC when starting out or with just a few properties, usually not necessary or recommended (Except by attorneys-sorry Jason :-)

I was going to talk to CPAs, maybe attorneys, since I need to set up LLCs, do taxes, and advice in general regarding family/generational financial planning, but CFP may be a better route.