If you have a partnership structure or some other facts and circumstances around the loan that indicate you are extending it in the capacity of a trade or business, it will be considered ordinary income.Keep in mind that the tax rates will not differ between ordinary and passive income unless you sell the loan for a gain/loss.

Shouldn’t take me much time and I’m thinking this will also help look at the combined accumulated losses and assist financial planning.If you don’t mind me asking, do you have specific tools you use for finding deals?

So, now almost two years later, I've had to close my flipping business because I can not seem to recover from this loss. 

With a 4-plex, losing one tenant is only a 25% loss of income versus a 50% loss in a duplex.That said, a duplex might be easier to manage, especially if you're new to investing or will be away for long stretches of time.

REPS stands for Real Estate Professional Status—a tax designation that lets real estate investors write off rental losses (like depreciation and expenses) against other income, potentially saving a lot on taxes.

Flipping always seemed more risky and STR is riskier as well though it can be more profitable it can lead to serious losses. 

You may be able to get out of this bad deal with only your fees as a loss.

Why we don’t like ARR (Average Rate of Return)It’s easy to skew the numbers.Here's an example of a positive ARR of 12.5%, but the investment loss is $50.Year 1 Start Value: $100 End Value: $25 Annual Return: -75%Year 2 Start Value: $25 End Value: $50 Annual Return: 100% ARR = 12.5%Am I missing something here?

Just food for thought from a friend who owns a larger development company...

Are you finding the deal, are you managing the deal (filling the units, taking care of the maintenance calls, making sure rent is collected), are you funding the deal or going 50/50 on profits and losses.