I will have slight variations over at most a period of time of less than 1 year. 

@Jennifer PasconI think the term “good deal” has a very wide variation and what a good deal looks like to one person could be a horrible deal to another.

This kind of gains is simply a variation of capital gains, and it can be deferred with OZ, with 1031 exchanges and with installment sales.The second one is true depreciation recapture.

You have to purchase at least as much real estate as you sell and use all of the net proceeds if you want to fully defer all tax.Within all of this could be a hundred variations or possibilities depending on your specific situation. 

@Ryan Ray we have clients doing BRRRR's and variations all year long.

The first part amounts to a variation personal loan, in which I’d be best to choose an option based on his goals-either provide a lower rate of return paying intetest only until we sell, or a true short term loan with a competitive rate.The second would be a true partner, in which case the only skin in the game for him is the portion of the down payment.

The folks that succeed with rare exception do some variation of what I outlined above.

Valuation variations could easily create a taxable event. 

The Washington Landlords Association is a great resource, and it's even better for us because their office is here in Oly. walandlord.orgAs some WA landlord-tenant laws just changed July 1st, and given the variations in landlord tenant law from city to city, probably working with a local real estate lawyer to draft a lease would be the best overall choice.

Look for darker browns or other variations or speckles to hide stains better.