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@rodrigo wrote:

Everything will go to schedule C, SE Tax on rental income & gain on sale, properties & improvements to inventory until sold. Correct?

Is he allowed to claim depreciation expenses on the leased properties?

Because of the installment sales how should I treat the inventory at the end of the year?👍

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Yes.  Unless there is evidence that the property is not "primarily" for sale.  But the fact that he immediately puts it up for sale and only does month-to-month contracts makes it seem "primarily" for sale to me.

No (with the same "unless" as above).

It was sold.  It is no longer part of inventory.