Yes, this will be taxed at the highest rate, ordinary income, identical to a flip. 

Could the attorney cause you other problems, maybe under a statute of frauds/inducement, depending on the entirety of the situation….maybe.Bottom line, if the seller did not have legal authority to sell the property, the contract is likely void on it’s face.

Tax rates are almost all identical and ludicrous in Albany, Schen, or Renss counties, so that's also a wash. 

Someone much smarter than me will chime in but if not planning on using house as a second home you would be committing fraud to get a loan under second home rules. 

The advantage of using the safe harbor Reg D is that it won’t be challenged by the SEC, and you have an affirmative defense in case of an investor lawsuit, which would be unlikely absence fraud.

Honest Review:ALERT- INVESTMENT FRAUD Be Careful with Rehab Kings LLC - Kevin Swart and their team.They have other companies:Take note of the people that works in this companiesTYJ Property Investments  Rehab Kings LLC  Kevin SwartNicholas KraychukTabatha MullerKonnor JablonskiThey offer fully renovated properties with good rental income and property management services.This is what you get:You get damaged, almost destroyed, dirty in horrible conditions properties, with no utilities and in bad conditions.The tenants have no leases, they will not pay you rent and you will have to invest money on evictions, to get this properties flowing.They will push you to do the closing quick because the conditions of the property.The inspection report only shows the nice part of the houses, all the damaged and bad parts of the property are removed, they take pictures of what works for them to show a good property.Once you ask them for help, they will ignore you and never again reply back or give you excuses every time.Please do not lose your money in this FRAUD.You will have to pay a lot of money to put the property in good conditions and in Evictions no one will pay rent, plus they dont give you keys of the property so you have to brake lock.Dont lose your money

Not trying to advocate fraud, you'd have to work out something with the contractor to somehow pass along savings in costs to you. 

Hey I'm new here but have owned a rental property in Illinois with a section 8 tenant for about 2.5 years. The ceiling had a crack in it and I had someone look at it last Thursday who said it would be okay until today...

The two most common reasons agents are sued is misrepresentation of value and fraud.

They receive an email, click on the link and pay the fee (the one I used was $40 per person), fill in their social and other details, and answer identity verification questions.