My biggest concern is that there could be an increase in Capital Gains tax depending on who wins the election. This is the single biggest factor from the government that influences my house flipping business, and in my opinion I'm already paying way too much in tax when I do a short term deal. Long term capital gains taxes of 15% do seem more fair to me, and I was hopeful that a candidate might cut short term cap gains taxes to 15% also, but it doesn't look like I'm going to get my wish.
If capital gains taxes creep up to say 40%, there will be no incentive to really stay in the house flipping business, because even with deep discounts and great deals -- You'll end up giving almost 1/2 of your profits to the US Government. If this type of thing occurs, I suspect most people in this busniess will change their business model to be a more "buy, rehab, and hold" type company for rental income/cashflow. Maybe then at some point in the future if we get a more business friendly president, we can liquidate our holdings at that time for less of a tax burden.