And should I just get a conventional loan?

In fact, passive income has generally a better tax treatment than active income.Flip properties are considered the sale of "inventory" so you are a dealer of property. 

I am confused on if this financing is amortized like a conventional loan, or do you make it interest-only with a balloon? 

Ok, here’s what I’m trying to figure out.As a first time real estate investor, I understand what’s available in term of funding the purchase, for the most part.If we go the hard money/ private lender route, we’ll need to refi after the 1-year balloon, which is what I’ve been told are the terms from the lenders.If I’m doing short term rentals, my conventional lender is telling me I need to wait 2 years to be able to use the income.Any ideas out there on how to refi at the 1-year mark for the balloon payment if you can’t use the income yet?

I have been hearing differing opinions on financing.. my question is.. which would be better a conventional loan  or form an LLC and   use hard money? 

(Pros-cons) OrFinance the whole thing on conventional having to put 25% down?

Geez...that's like asking what do I need to know about construction, financing, valuation, municipal codes and permitting, Landlord/Tenant Laws, liability protection, marketing, tenant screening/lease contracts, running a business, market demographics/inventory/year-over-year appreciation/rent pricing - and a whole lot more.  

I’m closing on a another property in 3 weeks and already using my second home/vacation conventional loan for that.

There is no legal way to 1031 a flip as it is considered inventory.

But physically altering with infrastructure etc creates inventory and requires you to start a new clock to demonstrate your intent to hold for productive use and allow the 1031.