Because I heard that if you are tagged as an active investor/dealer, you have to pay ordinary income tax, you cant do a 1031 exchange, you can't have tax deductions and I think you also have to pay self employment tax or something and I don't want that to happen to me if I get started.

Sale price - selling costs- purchase price - improvements - depr = Taxable gainPortion attributed to depreciation is at ordinary tax rate not CG up to 25%

Dont want to turn passive income into ordinary.

The lender also told me that even though we have strong rental history showing on our income taxes, she can not count "ordinary income" to qualify for a mortgage. 

I am interested in investing in a single family condo(1BR or 2 BR). Its

But it's a bit 'out of the ordinary', so might need to work with them to figure out how to do it.

It’s an active trade generative ordinary income because one is selling inventory, in this case real estate.

It says on the loan website "If you have suffered substantial economic injury" and then goes on to say "Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses.

Active pros will often shy away given the likely extended timeline and ordinary buyers are scared of them.

Here is what my EIDL documents say and I would like to discuss some points here:Borrower will not sell or transfer any collateral (except normal inventory turnover in the ordinary course ofbusiness) described in the "Collateral" paragraph hereof without the prior written consent of SBA.USE OF LOAN PROCEEDS· Borrower will use all the proceeds of this Loan solely as working capital to alleviate economic injury caused bydisaster occurring in the month of January 31, 2020 and continuing thereafter ...REQUIREMENTS FOR USE OF LOAN PROCEEDS AND RECEIPTS· Borrower will obtain and itemize receipts (paid receipts, paid invoices or cancelled checks) and contracts for all Loan funds spent and retain these receipts for 3 years from the date of the final disbursement.Borrower will not sell or transfer any collateral (except normal inventory turnover in the ordinary course ofbusiness) described in the "Collateral" paragraph hereof without the prior written consent of SBA.1.