It's not a complete killer, but it does impact returns.. so there's one big advantage!

So, an owner could enjoy the property and in 2+ years sell it for the appreciation and take advantage of the sec121 exclusion. 

You’ll have some advantages over them (don’t need to close deals to pay bills) and many disadvantages so just be cognizant of this. 

Since you work for a land clearing company try to use that to your advantage.

When the GFC hit that model BRRRR went the way of the dodo bird you could not get an investor refi for many years.fast forward to BP and today its all come full circle. and I even do this for VERY select clients today they have no money in the deals and end up with a fully levered rental..

They won't be able to finance and the contractor they selected if they get wind of it, probably won't start building. 

Is there a way for her to utilize the tax advantages of real-estate through the 30 year ownership?

The advantage to buying, assuming you carefully vet the business, is that you could have cash flow day one and not the uncertainty of when you may be able to pay yourself when you start your own.

@Sathiya GaneDo you think My friend is taking advantage of me they have a total of five on the street?

so, there is the advantage of the FHA in that situation.in your example, the second purchase would most likely be considered an investment property as you'd probably have a hard time selling that its a vacation home.